Russia’s Fanagoria Begins Exporting Wines To Mongolia

Russia’s Fanagoria, one of the countries largest winemaking companies, has begun exporting wines to Mongolia, the company has reported.

It said that the wines were delivered to the California restaurant chain located in Mongolia’s capital, Ulaanbaatar. It did not disclose the volume supplied. The California restaurants serve fusion cuisine popular with locals and expats alike.

Fanagoria CEO Pyotr Romanishin said that this was yet another step forward for the Russian winemaking industry in terms of consolidating its image on overseas markets. Mongolia and the Eurasian Economic Union (EAEU) signed an Interim Trade Agreement (ITA) in June 2025, which is valid for three years and can be renewed. The FTA has reduced customs duties on 367 commodity sub-items from each side and has allowed companies such as Fanagoria to have improved economic conditions for accessing the Mongolian market. It also provides a pathway for Mongolia to diversify its trade relationships with Russia and the Russian domestic market.

Fanagoria exports 800,000 bottles of wine each year, with key export markets in China, Kazakhstan, Belarus and Uzbekistan. It began exporting sparkling wines to Israel for the first time this year.

Fanagoria is a full-cycle enterprise, engaged in the production of alcohol, as well as the cultivation of grapes, grape seedlings, wholesale and retail trade. The vineyards are located on the Taman Peninsula in the Temryuk district of Krasnodar, south Russia. The company’s vineyards cover 4,500 hectares.

The Mongolian market is small, with a total population of just 3.7 million, with about 50% of that middle class and able to visit restaurants such as California. The population of Ulaanbaatar is about 1.7 million, suggesting a latent adult age consumer market of about 425,000. However, the market is competitive, with a high ratio of alcohol shops to the population.

Wine consumption in Mongolia has been increasing and is excess of 8 million liters per annum. This growth is driven by a shift in consumer preference towards imported wines, as more people see wine as a trendy beverage for social gatherings, also influencing the rise of wine appreciation and education.