Russian drinks market hit by CO2 shortage

Following its invasion of neighbouring Ukraine earlier this year, Russia was slammed with a multitude of EU-imposed sanctions that have impacted a range of industries within the country.

One such industry is Russia’s carbonated beverage sector, which has been experiencing a shortage of carbon dioxide (CO2) for the past two weeks, according to Russian newspaper Kommersant.

In March, soft drink giants Coca-Cola Co. and PepsiCo suspended operations within the country, contributing to a change in the Russian carbonated drinks market.

Disruptions across the full CO2 supply chain – with shortages estimated at 10-15% - have also been due to the decline in fertiliser exports to foreign markets.

CO2 is the main by-product of fertiliser production and – as one of the world’s biggest fertiliser producers – Russia has been traditionally self-reliant when it comes to CO2 supply.

According to the Russian Association of Fertiliser Producers, Russian fertiliser exports fell by 40% in April compared to March.

Kommersant has also reported that some CO2 production factories have ‘probably’ begun scheduled repairs, putting further strain on the industry.

Other causes 

Due to the shortage of packaging for beverages, producers have begun to switch to larger containers, which has led to an increase in CO2 consumption per 1 litre of product.

With temperatures regularly hitting 30C+ in capital city Moscow, the onset of summer is likely to have caused increased demand for packaged beverages, contributing to any existing CO2 shortage.

A global issue 

With energy costs rising worldwide, concerns over the supply of CO2 have become a global talking point.

Fears of a UK shortage were stoked following the closure of CF Industries’ Ince and Billingham fertiliser production plants last year.

from:gasworld