The Kizlyar distillery is the first  company to distil a totally Russian single malt whisky.

The company, funded by an unidentified Russian businessmen, is located in  Dagestan, "the country of mountains",  50  miles west of the Caspian Sea.  It is best known for its 'fatty lambs, oily brandy and Islamist rebels fighting a low-level insurgency against federal forces".

Alibek Irazikhanov, director general, said: "Our spring water is great, no worse than in Scotland," he said, "they have  Highlanders, but we too live in the mountains. Our task is to make high-quality, affordable whisky, cheaper than imports."

200,000 liters of single malts, grain and blended whiskies distilled from  local barley is currently  maturing  in Port, Madeira and Sherry casks.  The whiskies will be sold from the distillery at wholesale prices of 200 rubles to 250 rubles (£4 to £6) per bottle.

"Of course, the people do not normally drink litres of whisky, as they do with  vodka, but why not? If our people can do it."