greater control over vodka, a monopoly that was
codified in the 1649 Ulozhenie (code of laws).
Disputes over the succession to the throne at
the end of the seventeenth century loosened state
control over vodka, but Peter I (the Great, r.
1682–1725) reasserted strict control over the state
monopoly. Catherine II (the Great, r. 1762–1796)
allowed the gentry to sell vodka to the state. Since
the state did not have sufficient administrators to
collect revenue from sales, merchants were allowed
to purchase concessions that entitled them to a mo-
nopoly of vodka sales in a given area for a speci-
fied period of time. For this concession, merchants
paid the state a fixed amount that was based on
their anticipated sales. These tax-farmers (otkup-
shchiki) assured the state of steady revenue. The
percentage of total revenue derived from vodka
sales increased from 11 percent in 1724 to 30 per
cent in 1795. Between 1798 and 1825, Tsars Paul
I and Alexander I attempted to restore a state
monopoly, but gentry and merchants, who prof-
ited from the tax-farming system, resisted their at-
tempts.
Under the tax-farming system, prices for vodka
could be set high and the quality of the product
was sometimes questionable. Complaining of adul-
teration and price gouging, some people in the late
1850s boycotted buying vodka and sacked distil-
leries. As part of the great reforms that accompa-
nied the emancipation of the serfs, the tax-farming
system was abolished in 1863, to be replaced by
an excise system. By the late 1890s, it was esti-
mated that about one-third of the excise taxes never
reached the state treasury due to fraud.
Alexander III called for the establishment of a
state vodka monopoly (vinnaia monopoliia) in or-
der to curb drunkenness. In 1893 his minister of
finances, Sergei Witte, presented to the State Coun-
cil a proposal for the establishment of the state
vodka monopoly. He argued that if the state be-
came the sole purchaser and seller of all spirits pro-
duced for the internal market, it could regulate the
quality of vodka, as well as limit sales so that peo-
ple would learn to drink in a regular but moderate
fashion. Witte insisted that the monopoly was an
attempt to reform the drinking habits of people and
not to increase revenue. The result, however, was
that the sale of vodka became the single greatest
source of state revenue and also one of the largest
industries in Russia. By 1902, when the state mo-
nopoly had taken hold, the state garnered 341 mil-
lion rubles; by 1911, the sum reached 594 million.
By 1914, vodka revenue comprised one-third of the
state’s income.
Established in 1894, the monopoly took effect
in the eastern provinces of Orenburg, Perm, Samara,
and Ufa in 1896. By July 1896, it was introduced
in the southwest, to the provinces of Bessarabia,
Volynia, Podolia, Kherson, Kiev, Chernigov, Poltava,
Tavrida, and Ekaterinoslav. Seven provinces in Be-
larus and Lithuania had the monopoly by 1897,
followed by ten provinces in the Kingdom of Poland
and in St. Petersburg, spreading to cover all of Eu-
ropean Russia and western Siberia by 1902 and a
large part of eastern Siberia by 1904. The goal was
to close down the taverns and restrict the sale of
alcoholic beverages to state liquor stores. Restau-
rants would be allowed to serve alcoholic bever-
ages, but state employees in government shops
would handle most of the trade. The introduction
of the monopoly caused a great deal of financial
loss for tavern owners, many of whom were Jews.
Because the state vodka was inexpensive and of uni-
formly pure quality, sales soared. Bootleggers, of-
ten women, bought vodka from state stores and
resold it when the stores were closed.
In 1895 the state created a temperance society,
the Guardianship of Public Sobriety (Popechitel’stvo
o narodnoi trezvosti), in part to demonstrate its in-
terest in encouraging moderation in the consump-
tion of alcohol. Composed primarily of government
officials, with dignitaries as honorary members, the
Guardianship received a small percentage of the
vodka revenues from the state; these funds were
intended for use in promoting moderation in drink.
Most of the limited sums were used to produce en-
tertainments, thus founding popular theater in
Russia. Only a small amount was used for clinics
to treat alcoholics. Private temperance societies
harshly criticized the Guardianship for promoting
moderation rather than strict abstinence, accusing
it of hypocrisy and futility.
With the mobilization of troops in August
1914, Nicholas II declared a prohibition on the con-
sumption of vodka for the duration of the war. At
first alcoholism was reduced, but peasants soon be-
gan to produce moonshine (samogon) on a massive
scale. This moonshine, together with the lethal use
of alcoholic substitutes, took its toll. The use of
scarce grain for profitable moonshine also exacer-
bated food shortages in the cities. In St. Petersburg,
food riots contributed to the abdication of Nicholas
in February 1917.
ALCOHOL MONOPOLY
30
ENCYCLOPEDIA OF RUSSIAN HISTORY