Ukrainians are opening small wineries in droves despite the war and pressure from imports
11 August 18:46
ANALYSIS FROM If you look, you can find quite a few Ukrainian-produced wines on the shelves of Ukrainian stores. The thing is, right next to them, on the adjacent shelves, there’s a much larger selection of imported wines. It’s no surprise that under these conditions, Ukrainian winemakers—by their own admission—are currently competing not so much with each other as with foreign producers, and they’re doing so quite successfully. "Komersant Ukrainian" investigated how and why they’re succeeding.
Reality and Expectations
The Office for Entrepreneurship and Export Development, together with Diya.Business and commissioned by Wines of Ukraine, conducted a study on the state of the wine industry. Here are just two key findings from the study:
– Between 2019 and 2023, the area of vineyards in Ukraine nearly halved. In 2024, growth was recorded for the first time—by 6.6%.
– In 2025, 40,000 metric tons of grapes of the main varieties were processed into wine—25.4% more than in 2024. At the same time, the average annual decline from 2019 to 2025 was 24%.
Svitlana Tsybak, chair of the Association of Craft Winemakers of Ukraine, offers an objective assessment of these figures:
“The 6.6% increase in vineyard acreage in 2024 was an important positive sign after several years of rapid decline. For me, this is, first and foremost, evidence that the industry is not only trying to survive but also sees a future and is ready to invest in it. At the same time, I wouldn’t call this a sustained reversal of the trend just yet. In 2025, the area under wine grapes decreased by approximately 1%, while that under table grapes decreased significantly more. In other words, the recovery is uneven. The fact that Ukrainian enterprises processed about 40,000 metric tons of grapes in 2025—25.4% more than in 2024—is indeed a positive indicator, but it’s important to understand that this growth came from a very low base in the previous year, when processing volumes dropped sharply.”
Svitlana Tsybak also explains the specific factors that drove this growth in grape processing.
“First, yields increased: the national average in 2025 was about 40.4 centners per hectare. Second, some enterprises resumed operations, and their production capacities began operating more actively. Third, the increase in the number of small wineries is creating additional demand for high-quality Ukrainian grapes. At the same time, 40,000 metric tons is still significantly less than Ukraine’s pre-war potential. Therefore, I view this 25.4% as the beginning of recovery, but not as a full recovery of the industry,” the expert notes.
She also mentions another optimistic trend: new vineyards are emerging in Ukraine. They are being planted in the Mykolaiv region—after the land has been cleared of mines—as well as in regions that were previously atypical for viticulture, such as the Kyiv, Podillia, and Lviv regions, among others. The results of these plantings will be visible and fully assessable in three to four years.
According to Svitlana Tsybak, head of the Association of Craft Winemakers of Ukraine, there are currently over 180 wineries operating in Ukraine, and together with grape-growing enterprises, the industry comprises more than 200 active operators. The largest concentration is in the Odesa region; among the traditional wine-producing regions are also Zakarpattia and Mykolaiv regions. At the same time, as Svitlana Tsybak explains, a new geography of Ukrainian wine is rapidly taking shape: wineries are opening in the Kyiv, Podillia, Lviv, and Ternopil regions. For the most part, these are small wineries that are seeking and finding their place in the market alongside large enterprises. Ihor Petrenko, a winemaker and owner of the craft winery BIOLOGIST, continues:
“We definitely need to distinguish between industrial winemaking and craft winemaking. Because they offer different opportunities, different experiences, and different wines overall. That’s why there are large producers—KOBLEVO, SHABO, Bolgrad, and others—that produce millions of bottles. This is, of course, wine, but it’s, let’s say, of the simplest possible quality, made according to technical specifications. And those who can’t afford more expensive wine buy this wine. Craft wine, on the other hand, is wine with soul—made in smaller batches but with love. It involves a lot of manual labor. And it’s certainly of a higher quality. The number of craft winemakers is growing, and the quality is improving. More precisely, quality varies from producer to producer, but overall, the trend is positive,” notes the entrepreneur.
According to Svitlana Tsybak, the main reason for the growth in the number of small wineries has been the simplification of legislation: bureaucracy has been significantly reduced, and procedures have become clearer and more accessible.
Ivan Plachkov, founder of the family-run “Kolonist” winery, agrees with this assessment and describes the current period as a transitional phase for the wine industry.
“Laws have been passed in the country that are now leading to an increase in the number of wineries. And we are in this transitional phase—following the era of industrial winemaking that existed during the Soviet Union.” The current period is very difficult. This is due, for example, to objective factors such as land acquisition. Because in order to plant vineyards, the land must be privately owned and in a single contiguous plot. From a business perspective, this is a long-term endeavor, and if someone gets involved in it, it’s not for the sake of business, but with the hope that someday it will become a business—one with a civilizational component. “It’s difficult and takes a long time to get it off the ground, but once you do, it’s hard to stop,” says Ivan Plachkov.
His answer to the question, “Why, then, do entrepreneurs decide to get involved in this?” turned out to be quite philosophical:
“It’s a matter of civilization. A sophisticated wine culture is an insufficient but necessary condition for a civilized state. Throughout the entire history of human existence, people have not invented anything wiser than wine and bread.”
The Foundation of Foundations
“The place that creates wine”—this is the poetic definition given to the place of origin of the grapes, or terroir. Essentially, this refers to the natural and geographical conditions characteristic of a specific location, which influence the grape-growing process and give the wine its unique flavor. And it’s not just about the climate, but also the soil, topography, and the amount of rainfall and sunlight in the region. Ihor Petrenko, owner of the BIOLOGIST craft winery, explains the special value of terroir as follows:
“Terroir is the key story. Why do people around the world pay $5 or 3 euros per bottle for some wines, yet 1,000 or 5,000 euros per bottle for others? It’s the characteristics of the terroir—that is, the unique qualities of the specific area that produce a distinctive wine. Typically, there is a characteristic grape variety for each terroir—one that has been selected over the course of centuries or millennia—a variety that truly shines. It is one-of-a-kind. Everything here plays a role—climatic conditions, soil composition, and so on.”
Ukraine has a variety of terroirs: the Black Sea region, Transcarpathia, Podillia, and the central and northern regions. Each has its own grape varieties and its own winemaking traditions.
The family-run “Kolonist” winery, for example, is located in the village of Krynychne in the Bolhrad District, in southern Odesa Oblast. This is one of Ukraine’s finest wine-growing regions—Danubian Bessarabia—where viticulture has been a long-standing tradition dating back to the time when the Greeks and Thracians first discovered these fertile lands. Ivan Plachkov, founder of the family-run “Kolonist” winery, explains.
“Wine has been produced in the south of the Odesa region since the time of ancient Greece. That was Thrace. It’s present-day Izmail, Bolhrad, and so on. The 45th parallel runs through there. It’s also the same parallel as Bordeaux and Piedmont. And these are all excellent terroirs,” explains the winemaker.
“Chateau Chizay” is a winery located near the ancient town of Berehove in Transcarpathia, a region with a long history of viticulture. And, according to the winery, it is precisely the slopes of the volcanic Carpathians, plenty of sunshine, and sufficient water that have facilitated the development of winemaking in these lands since ancient times. Olesya Spitsyna, commercial director of “Chateau Chizay,” explains .
“At the heart of it all is always the terroir—that is, the place of origin of the grapes—because wine begins in the vineyard. In our case, it’s the terroir of Transcarpathia. For example, the character of the Mala Hora microzone is defined by the volcanic origin of the hills and the orientation of the vineyards relative to the sun. And in Midyanytsia, a natural lake near the Furmint vineyards (a grape variety—Ed.) creates a special microclimate that allows us to produce a harvest with unique characteristics. Grape varietal diversity also plays a role: we have varieties exclusive to Ukraine, such as Chersegi Füsereš and Blaufrankisch. We work with the Furmint variety—native to the Carpathian terroir—in a very creative and diverse way: we already have six wines in completely different styles that showcase this variety’s potential, and our winemaker Zoltán is preparing another one for release—a sparkling wine. “We want to create something unique,” the expert emphasizes.
The fact that Ukrainian producers are paying increasing attention to local and Ukrainian grape varieties—such as Odesa Black, Telta-Kuruk, Sukholimansky White, Citron Magaracha, and others—is very important. Svitlana Tsybak, chair of the Association of Craft Winemakers of Ukraine, emphasizes this point.
“It is these varieties that shape our own wine identity. We can produce excellent Chardonnay or Cabernet Sauvignon, but such wines are made in dozens of countries. But Odessa Black or Telt-Kuruk immediately tell the consumer that this wine comes from Ukraine,” notes Svitlana Tsybak.
According to her, the main competitive advantage of Ukrainian wine is its uniqueness.
Special Offers
The current balance between wine imports and exports in Ukraine gives ample reason to speak instead of an… imbalance. Wine imports currently significantly exceed exports. As evidenced by data from a recent study conducted by the Office for Entrepreneurship and Export Development in collaboration with Diya.Business commissioned by Wines of Ukraine, in 2025, compared to 2024, the volume of imports increased by $20 million, while exports decreased by $2 million.
According to Svitlana Tsybak, head of the Ukrainian Craft Winemakers Association, most Ukrainian wine was exported to Europe last year—this region accounted for 66.7% of exports, or about $6.1 million. Romania was the largest single market, accounting for approximately $3.65 million, or 40.2% of total exports. Next were the United States with a 9% share, Moldova with 8.6%, Kazakhstan with 5.2%, Poland with 4.3%, and the United Kingdom with 4.2%.
“However, what matters to us is not only the current volume but also the quality of our market presence. Strategically promising markets include the United Kingdom, the United States, Poland, Northern European countries, Germany, Japan, and other markets where buyers are interested in new wine-producing countries, local grape varieties, and small independent producers,” notes Svitlana Tsybak.
And Ukrainian winemakers have plenty to offer both foreign and Ukrainian wine connoisseurs. They have plenty to pique their interest. Ihor Petrenko, owner of the craft winery BIOLOGIST, explains.
“We produce thirty different wines. The name ‘BIOLOGIST’ itself indicates that there’s something organic here. We’re certified as an organic producer—the only ones in Ukraine so far, unfortunately. And this applies only to our vineyards in the Kyiv region. We have 3 hectares in the Kyiv region and another 14 hectares in the Odesa region. The ‘organic’ aspect lies in the fact that we don’t use any chemical treatments in the cultivation or production of our wine. For example, we have the ‘Pershotvir’ wines. These wines come specifically from our vineyards in the Kyiv region. Wild yeasts do all the work there—there are no additives. In other words, it’s just fermented grape juice with a little sulfur to preserve it, since not everyone stores wine under the right conditions. I also make orange wine—these are white wines that ferment on the skins. It’s a way of exploring our roots—how wine was made centuries or millennia ago,” says the winemaker.
The Chateau Chizay winery’s portfolio already includes more than 50 products. In addition to classic table wines and oak-aged wines, they’ve created Transcarpathia’s first full-cycle sparkling wines, produce Ice Wine, the vintage dessert fortified wine “Rose of the Carpathians,” Cahors, Orange-style wines, and many others. All of them are valuable to the winemakers. However, there are some that deserve special mention. Gennadiy Gutman, founder of the “Chateau Chizay” winery, explains .
“We’re currently facing some technical ‘challenges’: for one of our ‘star’ wines, — Furmint Late Harvest (a late harvest made from botrytized grapes, almost like raisins, a naturally sweet wine with a very rich bouquet)—there’s literally no more room on the product photo for our online store to add images of medals. That’s a joke, of course. We’re simply demonstrating that Ukraine has wines that truly rank among the world’s finest. Ukrainian wines are increasingly receiving high ratings and awards at international competitions, which means that Ukraine is beginning to be recognized as a country capable of producing world-class wines,” the winemaker emphasizes.
“Kolonist” also has its own special charm. Ivan Plachkov, founder of the family-owned winery, explains.
“I’m proud—without false modesty—that it was thanks to ‘Kolonist’ that we created the ‘Ukrainian wine’ brand back then. Because there were Moldovan and Georgian wines, but no Ukrainian ones. So, using two grape varieties—Odessa Black and Sukholimansky, which were developed by Ukrainian breeders—we began producing wine in 2007, and sometime around 2014–2015, it became the hallmark of Ukraine’s diplomatic corps. And then this wine became recognizable in other countries. And it really is unlike any other wine in the world.”
Svitlana Tsybak, Chair of the Association of Craft Winemakers of Ukraine, notes: Ukraine has its own grape varieties, a long-standing winemaking tradition, modern equipment, and a new generation of winemakers who are constantly learning and aligning with international quality standards. And so, according to her, Ukrainian wines are now capable of competing in the market, primarily thanks to their quality, authenticity, modern style, and excellent value for money.