On the eve of March 8, 2025, the Russian flower industry is facing significant changes as State Duma Deputy Dmitry Gusev proposes to increase customs duties on imported flowers. This measure, set at three euros per kilogram for cut flowers, aims to bolster domestic producers and stimulate growth within the national economy.
Gusev's proposal was directed at Minister of Agriculture Oksana Lut as he stressed the need for support for Russian manufacturers. The proposed customs duty hike is expected to facilitate the reduction of value-added tax (VAT) for local flower producers to ten percent, helping them to remain competitive against foreign imports. Gusev articulated the intent clearly, stating, “Flowers are not only a beauty, but also an important part of the economy. Therefore, we must give Russian manufacturers a chance. To encourage them to develop. To support. So they can enjoy beautiful, but also domestic flowers.”
Despite these potential support measures, the Russian flower industry remains heavily reliant on imported products—most of which come from the Netherlands, classified as an unfriendly nation amid the current geopolitical climate. The increased customs duties are positioned not just as economic support, but also as part of broader efforts to limit reliance on foreign goods.
The current market for flowers has also showcased dramatic shifts. According to data from Flowwow, one of Russia's key flower marketplaces, tulip prices have soared by 25 percent over the past year, with the average cost reaching 231.3 rubles per flower. Interestingly, this surge has brought tulip prices perilously close to those of roses, which are currently priced at 248.6 rubles. A year earlier, there existed a notable price gap of almost 39 percent between the two types of blooms. This market adjustment is attributed partially to agricultural difficulties encountered abroad, such as crop failures affecting bulb supplies from the Netherlands.
The Russian flower market’s dynamic environment highlights the underlying economic pressures and the pivotal role local manufacturers play amid increasing production costs and fluctuational demand. By proposing increased customs duties, officials hope to not only stimulate local production but also to keep flowers relatively accessible for consumers during seasonal demand peaks, such as International Women's Day.
Analysts indicate this move is part of broader economic strategies within Russia to strengthen local industries and reduce dependencies on external markets. Whether such initiatives will genuinely revitalize the domestic flower production scene remains to be seen, as the industry lags due to external pressures, including market fluctuations and rising import costs, which pose challenges for new cultivators.
Looking forward, it will be interesting to watch how this proposal plays out over time and if it effectively nurtures the growth of Russia’s domestic flower market. For now, consumers are left to navigate the rapidly changing flower prices as local producers seek to seize the moment presented by policy changes aimed at fostering national economic stability.