Fair Store" Program expands to online retailers in Russia

Dec.13.2022
Fair Store" Program expands to online retailers in Russia
The Fair Store program aims to combat tobacco products' illegal distribution by educating consumers and expanding to online retail.

According to Vladlen Maksimov, the head of the Small Business Association, the federal information and education program "Honest Store", which was created in 2019 to combat the illegal distribution of tobacco products, will soon expand to online retail.


The Fair Store initiative involves law-abiding retailers educating consumers about the risks of illegal cigarettes and providing informational materials on how to verify the legality of purchased cigarettes. Over the past three years, the program has expanded to include traditional trade, beginning in areas with the highest percentage of illegal sales and now encompassing thousands of small trade representatives in over 80 regions across the country.


“Today we have entered the next stage of the plan - with the support of the Russian Ministry of Industry and Trade, the plan is now entering retail chains. Retail chains, as the largest channel for informing consumers, will provide an opportunity to expand the scale of information dissemination activities aimed at combating illicit trade in tobacco products. Therefore, we hope that retail chains will respond as soon as possible and participate in the plan to inform consumers about how to check the legality of cigarettes,” said Maksimov.


Yulia Yudina, director of the department of circulation of specific types of goods for the domestic trade development division of the Ministry of Industry and Trade of Russia, emphasized that "spreading information through the Honest Store program is a very important step.


The objective of this initiative is to raise awareness among the business community and consumers about the illegal trade of Russian tobacco products. The Russian Ministry of Agriculture sets an annual minimum price for cigarettes, serving as a clear and transparent standard for consumers to determine the legality of the products. Additionally, a numerical method is used to verify the legitimacy of cigarettes, and those who violate legislation in the tobacco products trade will be held responsible.


Since 2015 and continuing through 2022, the illicit tobacco market in Russia has increased its share by 1000% to reach 12.1%, with continued growth projected. In terms of quantity, the illegal circulation of cigarettes throughout the country is expected to exceed 1.3 billion packages this year. Experts predict that by 2022, the loss to the federal budget due to illicit tobacco will reach 113 billion rubles, including 88 billion rubles in uncollected consumption tax and 25 billion rubles in uncollected value-added tax.


Industry insiders point out that the main prerequisite for the growth of the illegal tobacco market nowadays is the difference in consumption tax (and corresponding cigarette prices) between Russia and Eurasian Economic Union countries. Experts believe that this contributes to the growth of the illegal market and the suspension of unplanned inspections for small and medium-sized enterprises this year, resulting in a sharp decrease in the number of control measures.


According to Vladimir Zasravsky, deputy director of the Russian Ministry of Industry and Trade's digital labeling and product circulation legalization system, there was no test purchase conducted in 77 regions of Russia during the second quarter of 2022 due to a suspension. As a result, the number of inspections conducted decreased by 3.5 times and the number of illegal regulations enacted decreased by 4.5 times.


The supply of illegal cigarettes in the population remains high," summarized Zaslavsky.


Industry insiders are convinced that lifting the suspension of commercial inspections related to taxed products can improve market conditions.


2FIRSTS will continue to provide coverage on this issue, with further updates available on the '2FIRSTS APP'. Scan the QR code below to download the app.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA said tobacco grower organizations from five Americas countries called for stronger regional cooperation and balanced regulation, warning that restrictive policies could pressure farmers and legal supply chains. The article also provides data on major tobacco-producing countries in the Americas.
Special Report
Jun.02
Sweden Becomes First EU Country to Reach Smoke-Free Status as Daily Smoking Falls to 4.8%
Sweden Becomes First EU Country to Reach Smoke-Free Status as Daily Smoking Falls to 4.8%
According to the latest CAN report and multiple media reports, Sweden’s daily smoking rate fell to 4.8% in 2025, below the commonly used 5% smoke-free threshold, making it the first EU country to reach that benchmark.
News
Jun.05
Canada Recalls Siberia and ZYN Nicotine Pouches Over Unauthorized Sales
Canada Recalls Siberia and ZYN Nicotine Pouches Over Unauthorized Sales
Health Canada has issued a nationwide recall for nicotine pouch products sold under the Siberia and ZYN brands, citing a lack of market authorization. All affected lots are subject to the recall.
Jun.15
BofA: U.S. Nicotine Market Splits as Vapor Sales Fall 17.2% and Oral Tobacco Rises 5.8%
BofA: U.S. Nicotine Market Splits as Vapor Sales Fall 17.2% and Oral Tobacco Rises 5.8%
According to Investing.com citing Bank of America scanner data for the four weeks ending May 30, U.S. nicotine category performance was mixed, with cigarette, vapor and cigar sales declining while oral tobacco sales rose 5.8%.
Jun.10
Product | VEEV One Plus Goes Official as PMI Strengthens Its Closed-Pod Vaping Portfolio
Product | VEEV One Plus Goes Official as PMI Strengthens Its Closed-Pod Vaping Portfolio
Philip Morris International (PMI) has officially introduced the VEEV One Plus, the next-generation device in its closed-pod vaping lineup. The product is now featured on the official VEEV website in Portugal, bringing hardware upgrades including a new dual-pod storage system, a larger battery, and an updated device design while maintaining compatibility with existing VEEV One pods.
Jul.02
Malaysian Tobacco Control Groups Call for Annual 5% Tobacco Tax Hike
Malaysian Tobacco Control Groups Call for Annual 5% Tobacco Tax Hike
According to The Star and The Edge Malaysia, tobacco control groups in Malaysia have urged the government to raise tobacco taxes by at least 5% annually, saying the measure could reduce smoking rates and fund public health and social programmes.
News
May.26