The Russian fine wine market logged the sharpest regional increase in demand in July, a month when the market stabilised somewhat, according to UK-based The Wine Investment Fund.

The main wine indices, Live-ex 100 and Live-ex Investables, covering mostly French vintages, fell by 2.8 per cent and 2.2 per cent, respectively, during the course of July because of steeper falls at the start of the month.

Russian demand for fine wine, however, went up by a quarter last month, at a time when interest in Asia appears to be cooling. Quoting figures from Wine Spectator magazine, TWIF said the value of US auction sales had grown by 10 per cent over the previous six months, and exceeded sales in Hong Kong for the first time since 2010. At the same time, champagne sales in Hong Kong grew by 15 per cent in 2011, according to figures from the region’s governing body.

Moreover, the firm said that there was just one auction of note in July, held at Bonhams in London. Few so-called core investment wines were up for sale but the results were weak, with several unsold lots, most of them Lafite.

"TWIF’s view is that the flat market in late July and early August is largely a reflection of the quiet mid-summer period," the firm said. "TWIF does not expect further major falls as prices are close to the level at which consumers will re-enter the market and TWIF has seen evidence of wines finding floors where their prices are low enough to attract drinkers rather than speculators."