Impact of New E-cigarette Regulations on Russian Retail Market

A series of e-cigarette related policies will officially come into effect in Russia on September 1st, including a ban on flavor additives, the implementation of a licensing system for e-cigarettes, and the enforcement of government regulations setting a minimum price for e-cigarettes.

How will these comprehensive policies affect the e-cigarette retail market in Russia? Are e-cigarette retailers prepared? On August 25th, the staff of 2FIRSTS Moscow News Center visited more than 10 e-cigarette stores in Moscow to gain an in-depth understanding of the e-cigarette retail market in Russia.

Interviewed retail employees unanimously stated that while they had heard about the forthcoming e-cigarette regulations, they lacked specific knowledge about the details.

In an interview with 2FIRSTS, all store owners stated that they currently have no specific stockpiling plans and continue to make purchases based on their usual procurement patterns. They are still acquiring popular products in larger quantities based on past sales records, and procuring as needed. The impending regulations have not prompted any changes in their purchasing methods.

When asked about the new law set to come into effect on September 1st, most of the employees explained that law enforcement in Russia is not typically stringent. They believe regulatory authorities may not inspect the retail sector too frequently, which implies that the implementation of the law may have a limited impact on the retail end.

Moreover, 2FIRSTS has also noticed that despite the regulation imposed by Russia on June 1st to prohibit the public display of e-cigarettes, 30% to 40% of e-cigarette retail stores are still not covering or hiding their products.