The article considers the viticulture and winemaking sub-complex a strategically important element of Russia's agro-industrial complex in the face of current geopolitical and economic challenges. Increasing global challenges require accelerated development of domestic production. At the same time, global competition in the wine market grows. The article aims to identify the key challenges in improving the efficiency of viticulture in southern Russia, taking into account current economic conditions. The development of domestic viticulture is presented as a response to these challenges, aimed at enhancing competitiveness through the adaptation of grape varieties to local conditions and the modernization of infrastructure. The study emphasizes the industry's role in ensuring food security and implementing import substitution policies, particularly in the high-quality segment. Significant territorial expansion is noted: alongside traditional regions (such as Krasnodar Krai, Crimea, and Dagestan), new winemaking zones are emerging in the central and Far Eastern parts of the country. Record gross grape harvests and dynamic production growth are demonstrated. The positive and negative aspects of Federal Law No. 468-FZ are identified. The law's positive aspects include the creation of protected geographical indications, stimulating demand for domestic raw materials, supporting winegrowers with subsidies, and developing wine tourism. However, systemic problems were identified. They are: a persistent shortage of raw materials for high-quality winemaking, a lack of market stabilization mechanisms in legislation, and the high economic vulnerability of winegrowers due to the long production cycle. It is concluded that, despite the industry's active revival and expansion, further measures to improve legal regulation and strengthen the protection of grape producers' interests are necessary for its sustainable development.