Russian Government Considers Tobacco Retail Permit Legislation for Market Protection

Regulations by 2FIRSTS.ai
Aug.14.2024
Russian Government Considers Tobacco Retail Permit Legislation for Market Protection
Russia considers a tobacco retail permit bill to combat illegal products, with fines ranging from $109 to $547.

According to a report by Kommersant on August 14, the Russian government is considering a bill regarding the retail licensing of tobacco products. The measure aims to protect the market from infringement by illegal products.


The bill was jointly drafted by Andrey Kutepov, Chairman of the Economic Policy Committee of the Federal Commission, and Alexey Sinytsyn, Vice Chairman.


In order to obtain a license, applicants must submit an application, photocopies of the main technical equipment's passport, and copies of documents confirming ownership or operational management of the equipment. Additionally, there is a national fee of an unspecified amount that must be paid.


Individuals who sell unmarked tobacco and nicotine-containing products (such as e-cigarette liquid, heated tobacco products) will face fines ranging from 10,000 (109.47 USD) to 20,000 rubles (218.94 USD), while public officials will be fined between 30,000 (328.40 USD) and 50,000 rubles (547.34 USD), and legal entities will face fines of 300,000 (3,284.04 USD) to 500,000 rubles (5,473.40 USD). The accompanying statement to the law acknowledges that these fines are not proportional to the profits made from selling tobacco products and do not adequately incentivize market participants to leave the black market.


According to a report from the Ministry of Finance, the proportion of illegal tobacco products in Russia is expected to increase from 11% in 2021 to over 13% by 2023.


The bill states that in the first nine months of 2023, illegal tobacco trading has resulted in approximately 75 billion rubles ($8.2 billion) in losses to the national budget, with this figure increasing to 11.3% in the second quarter of 2024.


Starting from September 1, 2023, the electronic registration system for tobacco product manufacturing permits will come into effect. From March 1, 2024, the Russian Federal Service for Alcohol Market Regulation (Росалкогольтабакконтроль) will be authorized to oversee the production and distribution of tobacco, crack down on illegal activities, and ensure compliance with relevant regulations in the supply, procurement, and transportation processes.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Reynolds American launches U.S. investment plan: to invest $3.2 billion to expand capacity and advance a shift toward smokeless products
Reynolds American launches U.S. investment plan: to invest $3.2 billion to expand capacity and advance a shift toward smokeless products
Reynolds American says it will invest more than $3.2 billion across its U.S. operations by 2030. The investment began in 2024 and is expected to support more than 2,000 direct and indirect jobs. The company says the plan covers modernization and expansion of manufacturing facilities, scaling innovation and production, supply-chain initiatives and employee training, and also references its R&D spending and related site footprint.
Mar.06 by 2FIRSTS.ai
Philip Morris Korea Launches New IQOS ILUMA i “Electric Purple” Color Edition
Philip Morris Korea Launches New IQOS ILUMA i “Electric Purple” Color Edition
Philip Morris Korea said it has launched a new color edition of its heated tobacco device brand IQOS, called “IQOS ILUMA i Electric Purple.” The new color has been added to the IQOS ILUMA i series and applies to the Prime, standard, and One variants. The product is being sold through the IQOS website and nine IQOS directly operated stores across South Korea.
Mar.12 by 2FIRSTS.ai
Special Report | Belarus Rejects Vape Ban, Opts for Tighter Market Controls
Special Report | Belarus Rejects Vape Ban, Opts for Tighter Market Controls
After weeks of debate over a potential blanket prohibition, Belarus has decided against banning electronic cigarettes, choosing instead to tighten control over wholesale, imports and licensing. President Alexander Lukashenko warned that an outright ban could drive the market underground and undermine state revenues, as officials move to curb widespread illicit trade while keeping retail sales largely intact.
Mar.04
Philippine DTI Says Flavored Vape Products With Minor-Appealing Descriptors Are “100 Percent Smuggled”
Philippine DTI Says Flavored Vape Products With Minor-Appealing Descriptors Are “100 Percent Smuggled”
A Philippine Department of Trade and Industry official told a Senate hearing on vaping regulations that flavored vape products marketed with descriptors attractive to minors are “100 percent smuggled” and did not pass the agency’s licensing process.
Mar.16 by 2FIRSTS.ai
Australia’s Tasmania Tables New Bill to Strengthen Crackdown on Illicit Tobacco and Vapes
Australia’s Tasmania Tables New Bill to Strengthen Crackdown on Illicit Tobacco and Vapes
The Tasmanian government has tabled the Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026 in Parliament, proposing new offences, higher penalties and stronger enforcement powers to crack down on illicit tobacco and vaping products.
Mar.25 by 2FIRSTS.ai
UK Retailers Call on Government to Better Resource Trading Standards to Fight Illicit Tobacco and Vape Trade
UK Retailers Call on Government to Better Resource Trading Standards to Fight Illicit Tobacco and Vape Trade
Retailers in the UK have called on the government to provide greater resources to Trading Standards in response to the growing trade in illicit tobacco and vapes. Fed national vice-president Hemanshu Patel made the call during a panel discussion at the National Convenience Show in Birmingham on April 15.
Apr.21 by 2FIRSTS.ai