Illegal Tobacco Factory Discovered in Krasnodar, Russia

Nov.23.2022
Illegal Tobacco Factory Discovered in Krasnodar, Russia
Illegal tobacco factory discovered by Russian authorities in Krasnodar, producing unregistered brands with estimated value over 110 million rubles.

A report from the website "Stop Illegal Tobacco" reveals that during a raid in the Krasnodar Territory, the Krasnodar Customs and FSB discovered an underground counterfeit tobacco factory. Law enforcement found a production line, a tobacco raw material stockpile, and a finished product warehouse. Preliminary estimates suggest that the cost of the illegal cigarettes uncovered during the investigation alone exceeded 11 million rubles (approximately 1.3 million RMB), not including the cost of raw materials and production equipment.


According to a source familiar with the activities of the security forces, a workshop containing a cigarette production line, several tons of tobacco raw materials, and more than 10 packages of counterfeit cigarettes ready for transport was discovered in the Krasnodar border region of Leningrad.


This underground factory specializes in producing tobacco brands that have not been officially manufactured in Russia, such as Родопи, Опал, ВТ, "Silver," "Ростовтабак," and other illegal tobacco products.


The official websites of the Krasnodar Customs and the Southern Customs Management, including the Krasnodar Customs, did not provide any official information about the raid on their website "Stop Illegal Tobacco".


Cigarette cutaway image source: MKRU" (This is already in standard journalistic English.)


According to the National Science Capability Center (NCC), the Southern Federal District has seen the highest increase in illegal tobacco market share in the Russian Federation. This year, the illegal cigarette turnover in the Southern Federal District increased to 19.4%, up from 18.9% in 2021, which caused damage of 12.8 billion rubles to the federal budget. On average, the proportion of illegal cigarettes in Russia increased to 12.1% in 2022, with an estimated quantity of 1.3 billion packs, according to experts. In the Krasnodar Territory, the proportion of illegal tobacco turnover this year was 14.4%, compared to 10.4% last year.


This action is an example of effective collaboration between law enforcement agencies to combat the illegal trade of tobacco products. With the growing illegal market in southern Russia and throughout the country, it is necessary to strengthen cooperation between law enforcement departments. Furthermore, efforts must be made to encourage regions to crack down on illegal tobacco trafficking and improve regulatory frameworks to enhance the capacity of law enforcement and oversight agencies.


For years, the federal committee, accounting department, and department of industry and trade have been urging governors to combat illegal financial gain from the sale of tobacco products. The more effective the crackdown on illegal trafficking in specific areas, the more funds will be transferred to regional budgets from the consumption tax revenues. An effective market administration will provide additional income to different regions and prevent a shortage in the federal budget's consumption tax revenues. However, according to experts, significantly reducing the market share of the black market will require years of systematic and consistent work.


Statement:


This article is compiled from third-party information and is intended solely for industry professionals to exchange and learn from.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity and accuracy of the article's contents. The translation of this article is only intended for industry-related exchange and research purposes.


Due to limitations in translation abilities, this article may not fully capture the original meaning of the text. Please refer to the original text for accuracy.


The stance and statements of 2FIRSTS align completely with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and foreign issues.


The copyright of the compiled information belongs to the original media and authors. If there is any infringement, please contact us to have it removed.



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.

U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives said on September 23 that it has joined the interagency Trade Fraud Task Force to strengthen enforcement against illegal, misdeclared and smuggled vape and tobacco products. ATF will bring its authority under the Prevent All Cigarette Trafficking Act into the task force, including registration, reporting, shipping and record-inspection requirements covering interstate sales of electronic nicotine delivery systems. ATF said the move will strengthen its ability to trace illicit products from U.S. points of entry through domestic trafficking and distribution networks.
News
Sep.28 by 2Firsts Perspectives
South Korea Extends Vape Rules to Unmanned Stores After Bringing Synthetic Nicotine Under Tobacco Law
South Korea Extends Vape Rules to Unmanned Stores After Bringing Synthetic Nicotine Under Tobacco Law
South Korea's Ministry of Gender Equality and Family said on September 14 that it plans to designate unmanned e-cigarette stores as businesses where minors are prohibited from entering or working. Operators would be required to verify customers' ages and display notices restricting access by minors. The proposal is open for public comment through October 6. The move follows an April expansion of South Korea's statutory tobacco definition that brought products made with natural or synthetic nicotine under the Tobacco Business Act. Nicotine-free liquids and products using nicotine analogues such as 6-methylnicotine, however, remain an emerging regulatory issue.
Sep.21
JTI Invests ₱2.1 Billion to Upgrade Batangas Manufacturing Hub, Adds First Southeast Asia DIET Facility
JTI Invests ₱2.1 Billion to Upgrade Batangas Manufacturing Hub, Adds First Southeast Asia DIET Facility
JTI Asia Manufacturing Corp. has invested ₱2.1 billion, or about $37 million, in its manufacturing site in Malvar, Batangas, Philippines, to expand tobacco-processing capabilities. About ₱1.9 billion is allocated to JTI's first Dry Ice Expanded Tobacco, or DIET, facility in Southeast Asia, while more than ₱177 million has been spent on expanding its Controlled Atmosphere treatment facility. The Batangas plant supplies the Philippine market and exports to 22 overseas markets, making it one of JTI's key manufacturing hubs in Asia.
Sep.24
Arizona Turns to a 50% Retail Vape Tax as Tobacco Tax Revenue Falls 47% From 2008
Arizona Turns to a 50% Retail Vape Tax as Tobacco Tax Revenue Falls 47% From 2008
Arizona's First Things First is pushing for an excise tax equal to 50% of the retail price of vaping products, estimating that the measure could generate about $100 million annually. The agency says its tobacco-tax revenue has fallen 47% from 2008 levels. Arizona has attempted to broaden its nicotine tax base in each of the past two years: a 2025 bill proposed a 50% wholesale-price tax, while a 2026 measure shifted to a 50% retail-price tax covering alternative nicotine products and vapor products. Separately, the state enacted HB 4001 this year to establish a new licensing and sales framework for alternative nicotine products.
Sep.21
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
Key provisions of the UK's Tobacco and Vapes Act 2026 will take effect on Oct. 29, extending an age-18 sales restriction to all vaping and non-medicinal nicotine products. In England, Wales and Northern Ireland, the change brings zero-nicotine vapes within statutory age-of-sale rules and also covers products including nicotine pouches, strips and pearls. The law will also prohibit proxy purchasing for under-18s, consumer-facing vending machines, promotional giveaways and substantial discounts intended to promote vaping and nicotine products.
Regulations
Oct.10
Why Does JPMorgan Favor BAT Over Philip Morris Despite Forecasting Slower Growth of 3.9% Versus 6.2%?
Why Does JPMorgan Favor BAT Over Philip Morris Despite Forecasting Slower Growth of 3.9% Versus 6.2%?
JPMorgan resumed equity research coverage of British American Tobacco (BAT), Philip Morris International (PMI) and Imperial Brands in November 2026, assigning BAT an Overweight rating and the other two companies Neutral ratings. The bank forecasts like-for-like sales growth of 3.9% for BAT and 6.2% for PMI in 2027, but estimates the two companies will trade at approximately 11 times and 21 times 2027 earnings, respectively. JPMorgan cited BAT's improving position in US nicotine pouches and vaping products as a driver of its investment outlook. BAT reported a 220% constant-currency increase in US modern oral nicotine revenue in the first half of 2026, while PMI's ZYN US shipments returned to growth in the third quarter. Imperial expects NGPs to represent 4% to 5% of sales and has expanded its oral portfolio through acquisitions.
Capital Markets
Nov.12