Predicted Significant Price Increase for E-Cigarettes in Russia

According to a report from lenta.ru on August 22nd, Russian media predicts a significant price increase for e-cigarettes after September 1st, 2023, with an estimated rise of 30%.

The reasons for the price increase will be due to the rise in the exchange rates of the euro and the dollar, as well as logistics difficulties. Compared to spring, the cost of e-cigarettes has already risen by 10% because the most popular models are imported from overseas and purchased in foreign currency.

In addition, customs officials have started to conduct more thorough inspections on goods containing nicotine products. Market representatives say that the regulations on importing e-cigarettes have been tightened due to stricter laws against selling products to minors. Many importers are now forced to import small quantities of e-cigarettes, fearing that their products may be confiscated, subjected to surprise raids, and fined.

The Audit Chamber of the Russian Federation (AC) has proposed imposing tariffs on the import of e-cigarettes and IQOS. Similar to the import tax on water pipes and tobacco pipes, the proposed tariff would be set at 13% of the product's value. As a result, the joint venture hopes to balance the tariffs on nicotine-containing products and allocate an additional budget of 4.5 billion rubles annually.

In April 2023, Russian President Vladimir Putin signed a law prohibiting the sale of e-cigarettes to individuals under the age of 18.

Vyacheslav Volokin, Chairman of the State Duma, has stated that the law aims to protect the health of young people. Furthermore, starting from March 1, 2024, a ban on selling flavored e-cigarettes will come into effect. These restrictions will affect e-cigarettes with fruit, vegetable, sweet, and vitamin flavors. Additionally, sellers will be unable to sell e-cigarettes containing nicotine salts. These factors will all impact the selling price of e-cigarettes.