Russian bank VTB gets control of 11 distilleries

MOSCOW Oct 5 (Reuters) - Russian state-run lender VTB (VTBR.MM) has obtained a controlling stake in distillery Cristall, home to Stolichnaya vodka, the bank said on Monday.

VTB, Russia's second-biggest bank, also got control of 10 regional beverage producers across Russia from the state-owned alcohol production holding company Rosspirtprom which cleared its debt to the bank.

VTB said it obtained stakes in the 11 distilleries in accordance with a Russian government decision regarding the redemption of Rosspirtprom debt.

Kommersant business daily reported on Monday that Rosspirtprom owed VTB 5 billion roubles ($166 million).

Russian president Dmitry Medvedev has declared war on alcohol and ordered tough measures to curb alcohol abuse, describing alcoholism as a "national disaster".

Many officials have also called for the creation of a state vodka monopoly that would bring order to the market, which is estimated 30-50 percent illegal and untaxed.

Russia's Industry Ministry has already proposed limits on beer sales which could affect more than 25 percent of sales in Russia. [ID:nLT649319] (Reporting by Dmitry Sergeyev; Editing by Dan Lalor) ($1 = 30.12 roubles)