Vera Modenova, COO of the Russian flower and gift marketplace Flowwow, has criticized a proposal by Russian lawmaker Dmitry Gusev to raise import tariffs on flowers. Modenova argues that this move will not benefit the market, as flower prices are already expected to rise by around 20%, and the proposed tariffs could push prices even higher.
On February 27, Gusev proposed increasing flower import tariffs by March 8 and reducing VAT for domestic flower growers to 10%. He argued that this would help Russian producers grow their market share by reducing the number of imported flowers. However, Modenova warned that reducing the share of imported flowers and raising their prices would also drive up prices for domestic flowers.
Despite existing support measures, the Russian flower industry remains highly dependent on foreign suppliers. In 2024, imported flowers accounted for 70–80% of the market, with half of them coming from the Netherlands, which Gusev referred to as an "unfriendly" country. He also noted that nearly all tulip bulbs, the most popular flowers for March 8, are imported.
Modenova stressed that Russian suppliers, who only produce 19% of the flowers, will struggle to meet demand, as flowers are ordered months in advance.
Modenova predicts that the increase in import tariffs will primarily affect consumers, with bouquet prices rising due to higher customs fees. However, Flowwow does not expect demand to drop significantly. A survey by Flowwow found that 60% of respondents would still buy flowers, although they might opt for smaller bouquets.
In recent months, flower prices in Russia have already been rising. For example, the price of tulips has nearly matched that of roses.
Despite this, Russia has increased flower imports from Kazakhstan, with imports reaching 28,000 tons in 2024, compared to just 552 tons in 2023. Kazakhstan is now almost on par with the Netherlands in supplying flowers to Russia, with the Dutch exporting 32,000 tons over the same period.
Source: rb.ru