MOSCOW. June 22 (Interfax) - Illegal drinks constitute almost 50% of the Russian alcohol market and, as a result, state coffers are losing 45-55 billion rubles a year, an Audit Chamber press release says.

The Audit Chamber board on Friday discussed an analytical report on the effectiveness of the current system of levying excise taxes in the sector in 2005-2006 and in the first months of this year.

During the past three years, the aggregate volume of legally recorded sales of vodka and other spirits by manufacturers did not exceed 137 deciliters a year and in 2006 amounted to 117.6 million deciliters or 21.6% less than in 2005. Meanwhile, according to the State Statistical Service, combined retail sales of alcohol in 2006 amounted to 212.2 million deciliters.

A study of indicators in the production and turnover of ethyl alcohol and alcoholic drinks permits the conclusion that the situation in the sector is not improving.

The Audit Chamber has sent the report to both houses of parliament.