I heard that originally the Russians wanted to fuel their rockets with pure alcohol. But they abandoned that when they discovered the fuel would too often disappear before launch...
One of the perks of being in a Tu-22 unit in the 1960s was having access to the large supply of 40% ethanol used for the cockpit air-conditioning system.
The Mig-25 Foxbat also used alcohol for cooling - those PVO (Soviet Air Defence) units stationed in the cold could keep themselves warm.
Oh, they didn't drink it (not the vast majority of it, at least). Alcohol was a de-facto currency.
Many airplane radar systems used alcohol in evaporative cooling system, "dipping into stores" was apparently a common problem.
The V2s used alcohol (from potatoes) and liquid oxygen.
Yes, but they had access to better booze.
This was a real issue with the V2 rocket as related in Irving's book 'The Mare's Nest'.