Russia’s Vape Market Squeezed by Excise Hikes and Criminal Marking Rules

Key Highlights

• Supply tightened mid-Aug; by early Oct, leading liquids largely disappeared; shelf prices ~+50%.
• E-liquid excise rose from RUB 20 → 44/mL over two years; compliant retail prices surged.
• Criminal liability for unmarked goods effective Aug; “large-scale” from RUB 100k, up to 3 years.
• Price gap: Waka 10k at RUB 2,690 (compliant) vs RUB 1,490 (non-compliant).
• Good Vape reports adequate compliant substitutes; bill enables regional vape sale bans.

2Firsts, October 30, 2025 — According to Business FM, buyers noticed a sharp cut in vape and e-liquid assortments from mid-August. By early October, top e-liquids had largely vanished from major tobacco chains, with cheaper or questionable products left. Familiar brands, when available, were about 1.5× pricier than in early summer; devices showed a similar pattern.

Vape shops point to two main drivers: over two years, the e-liquid excise increased from RUB 20 to 44 per mL, pushing up compliant costs; and since August, criminal liability was introduced for unmarked products under Chestny Znak rules, with a “large-scale” threshold starting at RUB 100,000 and penalties up to three years, prompting pre-emptive shelf withdrawals.

A chain founder, Alexey, said on condition of anonymity:

“About 90% of e-cigs are ‘black’. They’re factory-made in China but enter via parallel imports, without excise, shipped through cargo. Even when labeled, many carry duplicate/incorrect Chestny Znak codes without proper inter-entity transfer records. Store owners fear jail and huge fines, so they pulled stock.”

While logistics have also been affected — with trucks stuck at the Kazakhstan border — entrepreneurs stressed this is not the primary factor. Pitersmoke founder Alexey added that the share of “white” devices is extremely small, and higher excise has doubled compliant retail pricing, deterring buyers. He cited Waka:

“The Waka 10,000-puff device now costs RUB 2,690 at my store; where unlicensed, improperly documented stock is still sold via non-official channels, it’s RUB 1,490 — a RUB 1,200 gap. For compliant sellers, the shelf-price jump is massive.”

“White” players say they struggle to compete with “grey” pricing; yet not all retailers see an “acute deficit.” Ekaterina Markvart, spokesperson for national chain Good Vape, said:

“I wouldn’t call it acute. As brands exit, others willing to follow the new rules are entering. We’re finding sufficient legal, ‘white’ products to meet current demand.”

The report also notes a government bill submitted to the State Duma that would empower regions to ban vape sales, with Nizhny Novgorod, Tyumen and Vologda among the early jurisdictions showing interest.

Image credit: Business FM