Russian Agency Calls for Licensing System for Tobacco Retail Industry

According to DK.RU's report on July 23rd, Igor Alyoshin, Director of the Russian Federal Service for Tobacco and Alcohol Control, stated that it is necessary to introduce a licensing system for the retail of tobacco products.

The retail regulation of tobacco products is one of the most important issues. We suggest authorizing and licensing sales points similar to the way alcohol is regulated, with regulatory responsibilities being handed over to the local governments of the Russian Federation. This can not only bring additional revenue to the budget but also immediately reduce the market share of illicit tobacco.

Starting from March 1, 2024, a new law has been introduced regarding the regulation of the tobacco industry, tobacco products, nicotine-containing products, and their production and distribution. Under this law, tobacco businesses must obtain a license and register their main equipment. While a license is not required for retailing tobacco products, there are now limitations on their packaging, transport, and labeling.

Athens revealed that as of July, there have been 225 market participants granted licenses, with 190 being manufacturers and the rest being importers.

We have seen the positive effects of the licensing system in the tobacco industry, with an increase in production, rising consumption tax revenues (including e-cigarettes), and the market becoming more regulated. If production is found to be carried out on unregistered equipment, licenses may be revoked. Manufacturers do not want to take on such risks.

The spokesperson stated that controlling the sale of traditional cigarettes is much simpler than e-cigarettes, as most cigarettes are sold in stores that already have alcohol sales permits.

Starting September 1, 2023, the functions of the former Tobacco Control Department have been expanded to include authority over tobacco and nicotine-containing products. The department has been renamed as the Tobacco and Alcohol Control Bureau.

At the same time, representatives of the federal parliament also joined the discussion. Senator Ayrat Gibatdinov told RIA Novosti that Russia needs to establish a unified register of tobacco shops.

I believe it is necessary to create a unified register for tobacco shops, assign them a unique number, and place it on every shelf, display case, and cash register. This system can help identify points of sale for nicotine products. Additionally, it is important to develop an application (similar to apps for reporting traffic violations), where every citizen can report and transmit data on violations in the sale of these products.

The congressman stated that he has already contacted Anna Popova, the Director of the Russian Federal Transportation Agency, to request consideration of the proposal.

In addition, Russian State Duma representatives have stated that they will continue to crack down on e-cigarettes. Currently, they are considering a bill that would completely ban the sale of nicotine and non-nicotine devices in Russia.