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President Vladimir Putin signed a new law decreeing that only Russian-made sparkling wine made can be labeled as Champagne in Russia.
Imports from France must now bear the words "sparkling wine."
Consequently, Moët Hennessy threatened to stop sending their bubbly to Russia before changing their minds and agreeing to ship their bottles with "sparkling wine" labels.
Moët Hennessy now says it would respect laws in place wherever they operate and would restart deliveries as soon as it can make the label changes.
It is hoping to maintain its 1 million liter share of the 6.5 million liters of actual Champagne imported every year.
However, the Comité Champagne, which promotes the interests of Champagne worldwide, wasn't happy with the law.
It emphasized that not only was Russia coopting the "Champagne" label for their use, but also stripping it from products originating from the area called Champagne.
Maxime Toubart and Jean-Marie Barillère, co-presidents of the organization, said that stated it is scandalous for Russia to deprive the people of Champagne the right to use their name.
They added that the name Champagne is protected in over 120 countries.
Media speculation is that Russia is eyeing to boost the wine industry in Crimea, which is known for its sparkling wine.
French newspaper Le Monde suggested that Russia's move could be both personally and financially motivated as billionaire Yuri Kovalchuk, a close Putin associate, owns wineries in the region.
