On April 11, the Russian State Duma passed a proposal to modify certain legislative regulations regarding e-cigarettes. The proposal includes the following:
- Banning flavor additives in e-cigarettes.
- Prohibiting online sales of e-cigarettes.
- Prohibiting the public display of e-cigarettes in stores.
- Setting a minimum retail price for e-cigarette products.
On April 13, 2FIRSTS held a live Q&A session on "Interpretation of Russia's E-cigarette Additive Ban Policy" in response to this proposal and invited relevant Russian experts to give answers. The special guests for this live broadcast are:
- LEV GRIG ORIEV, Chairman of the Professional Union of Russian Market Participants, Member of the Committee of Experts on Competition in the Tobacco and Nicotine-Containing Products Market, State Duma, Council of the Russian Federation
- IGOR SAMBORSKIY, CEO of BABYLON, one of the largest compliant distributors in Russia
Banning Flavor Additives Afftected the Russian E-cigarette Market
During the live session, Lev Grigoriev said the government would ban some flavor additives, but the specific regulations still need to be determined. The proposal was put forward to establish the government's power to enforce the ban, and a particular working group will be established after President Putin signs the bill. The ban may be postponed beyond the proposed date, September 1. The experts hope to preserve as many additives as possible, with the banned additives only harmful to health.
Igor Samborskiy stated that the ban was primarily aimed at illegal e-cigarette sales and would not affect the legal market. He suggested there would be cautious and observe policy trends before adjusting their supply chain. The Russian e-cigarette market consists of legal and illegal markets, and the response from these two markets would be different. Legal distributors would observe a wait-and-see approach, while illegal distributors must decide whether to take risks and continue their business or wait until there is more clarity on the policy and market.
Proposal to Ban Online Sales of E-cigarettes
Lev Grigoriev said that although it will be a long process for the government to crack down on illegal sales platforms, the proposal proposes to manage these illegal sales platforms will be quick and straightforward to implement.
Advice to Chinese Manufacturers
Igor Samborskiy suggested that the Chinese e-cigarette manufacturers must re-examine their direction after the amendment is introduced. They must decide whether to continue doing such risky things or re-adjust their layout. For gray customs clearance or black market e-cigarette manufacturers, their business conditions will become more and more difficult since the "Honest Mark" launch on April 1.
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