Russia Proposes Criminal Penalties for Illegal Tobacco Production and Sales

Mar.13.2023
Russia Proposes Criminal Penalties for Illegal Tobacco Production and Sales
Russia proposes criminal punishment for illegal tobacco production and sales, aiming to regulate the industry and reduce losses.

The Russian Ministry of Finance has proposed imposing criminal liability for the production and sale of tobacco products without a license. If the bill passes, manufacturers and suppliers of counterfeit cigarettes could face up to three years in prison.


The Russian Federation is currently submitting draft laws to the government's legal activities drafting committee for review. The proposed revisions include the Russian Criminal Code, the Russian Criminal Procedure Code, and the Russian Administrative Offenses Code. The Ministry of Finance has prepared accompanying documents for these laws, stating that they aim to implement state regulation for the production and circulation of tobacco products.


The Ministry of Finance's press department stated that the Ministry of Finance has prepared a bill to introduce state regulation in a separate industry law for the production and circulation of tobacco products, nicotine-containing products, and their production raw materials, and to establish specialized controls.


This bill has been revised to include changes to section 171, subsection 3, which pertains to the illegal production and/or trade of ethanol, alcohol, and alcohol-containing products. Specifically, the revised language now includes references to "tobacco products, tobacco derivatives, nicotine-containing products, and their raw materials.


In the final version, this provision will stipulate that mass production, purchasing, storage, supply (including importation into or exportation from the Russian Federation) of tobacco products, tobacco-related products, nicotine-containing products and their production raw materials without proper licensing will result in fines ranging from 500,000 to 1,000,000 rubles (45,000 to 90,000 yuan) or the equivalent of 1-3 years of income of the offender, or imprisonment for 1-3 years.


According to experts, the share of illegal tobacco products in the Russian market has increased from 1.5% in 2016 to 10.7% in 2021. The Audit Chamber reported that the total amount of federal budget losses due to the sale of illegal "tobacco" from 2016 to the first half of 2021 was 295.6 billion rubles (27.05 billion yuan). Of this amount, the loss of consumption tax was 246.3 billion rubles (22.54 billion yuan), the loss of value-added tax was 49 billion rubles (4.48 billion yuan), and the loss of excise tax was 3 billion rubles (270 million yuan).


Tobacco industry representatives believe that this bill will help combat the illegal distribution of tobacco products. The representative of Japan Tobacco International (JTI) in Russia said, "We support the comprehensive bill formulated by the Ministry of Finance.


Representatives of PMI's affiliated company in Russia believe that the measures being prepared will further reduce the share of the illegal market, thereby increasing the fill of the national budget.


Reference:


The Ministry of Finance proposes criminal penalties for the sale of counterfeit cigarettes.



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.

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
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii has enacted two new e-cigarette laws that significantly tighten market access requirements, requiring products to meet FDA authorization standards and banning disposable e-cigarette sales starting in 2027.
Jul.08
2Firsts Exclusive Analysis | RLX Q1 Revenue Rises 96.2%, International Business Points to a More Integrated Global Strategy
2Firsts Exclusive Analysis | RLX Q1 Revenue Rises 96.2%, International Business Points to a More Integrated Global Strategy
RLX Technology’s Q1 net revenues rose 96.2% year over year, with international business accounting for 72.3% of total revenue. Beyond the headline growth, the results point to deeper globalization: European operations, Nexus supply-chain integration and a broader product portfolio are becoming key signals to watch.
Special Report
May.20
Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown
Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown
Reuters reported that Shopify may ban all vape products from its platform as soon as this week, signaling that U.S. enforcement against the illegal vape market is expanding from retailers and importers to e-commerce platforms and payment networks.
MarketBAT
Jun.23 by 2Firsts Perspectives
China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco
China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco
CTIHK expects first-half 2026 revenue to fall 25%-30%, mainly due to lower tobacco leaf imports and delayed cigarette shipments to China’s domestic duty-free market. Its 2025 revenue mix—nearly 90% from tobacco leaf-related businesses and less than 1% from new tobacco products—shows continued exposure to traditional supply chains and trade variables.
Jun.18
China Tobacco Yunnan Patent Describes Cigar Flavor Granules With Encapsulation Rate Above 77%
China Tobacco Yunnan Patent Describes Cigar Flavor Granules With Encapsulation Rate Above 77%
According to public records from China’s National Intellectual Property Administration, a patent application filed by China Tobacco Yunnan Industrial Co., Ltd. for “cigar flavor granules” was published on May 12, 2026. The filing proposes purifying an ethanol extract of cigar tobacco leaves using LX-8 macroporous resin, followed by encapsulation with maltodextrin and sucrose fatty acid ester to improve smoking comfort, reduce dryness and enhance aroma release stability in reconstituted tobacco.
Jun.10