Russian Nicotine Production License and Minimum Sale Price SystemNote:The given text is machine-translated and may not fully reflect the original content.

Aug.31.2023
Russian Nicotine Production License and Minimum Sale Price SystemNote:The given text is machine-translated and may not fully reflect the original content.
The Russian government introduces a nicotine production permit and minimum selling price system for e-cigarettes and tobacco products.

The nicotine production license and minimum retail price system in Russia officially came into effect on September 1st. In March of this year, the introduction of a licensing bill for the production and circulation of nicotine products was approved at a government meeting. In April, the Russian State Duma overwhelmingly voted in favor (with over 90% support) of setting a minimum retail price for e-cigarette products.

 

Nicotine Production and Distribution License System

 

According to this bill, it is required to obtain licenses for the production and importation of tobacco, nicotine-containing products, and raw materials. Additionally, producers are obligated to register the main equipment used for producing such products. If the equipment is not in use, it must be sealed. Equipment used in illegal production will also be confiscated. Records of products and materials will be kept in the "Honest Label" marking system. This will ensure the implementation of comprehensive government supervision, as explained by the Ministry of Finance.

 

The bill also includes other measures to prevent illegal production and sales, such as prohibiting the sale of tobacco products and nicotine-containing products in non-consumer packaging and requiring the presence of accompanying documents and labels in their transactions.

 

The nicotine production license system requires that the production and circulation activities of tobacco, nicotine products, and raw materials obtain a license. There are a total of six types of licenses: raw material production license, product production license, product import license, raw material import license, cigar production license, and duty-free shop sales license.

 

Minimum retail price system for e-cigarettes

 

The selling price of nicotine-containing products must not be lower than the minimum price set for nicotine-containing products. The minimum price for nicotine-containing products is determined by the Russian Federation government. The N15-FZ federal law in Russia specifies the minimum retail price (EMCTP) for tobacco products, which serves as the basis for calculating consumption tax, value-added tax, and other taxes collected by the Russian Federation government. The law also stipulates that the retail price of any tobacco product must not be lower than the minimum retail price.

 

The calculation method is as follows: - The lowest price = tax rate of the unit quality or volume × (1 + value-added tax rate) × increase coefficient; - Value-added tax rate - determined according to the Russian Federation tax law; - Increase coefficient - additional coefficient considering the product characteristics (different product categories have different coefficients, ranging from 1.0 to 3.0).

 

This bill heralds a future where e-cigarette products will be subject to a national standard in setting minimum retail prices. The power to establish the minimum pricing for any such product will be dictated by the Russian Federation government, with violations being subject to penalties under the Russian Federation Administrative Offenses Code and the Russian Federation Criminal Code.

 


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.

Imperial Brands Acquires Helwit Owner Yoik Group for SEK 515 Million, More Than Doubling Swedish Nicotine Pouch Share
Imperial Brands Acquires Helwit Owner Yoik Group for SEK 515 Million, More Than Doubling Swedish Nicotine Pouch Share
Imperial Brands has agreed to acquire 100% of Swedish modern oral nicotine company Yoik Group AB for an initial SEK515 million, equivalent to about US$53.9 million, plus a deferred payment linked to performance over the next two years. Yoik owns nicotine pouch brand Helwit, which held about 3.4% of Sweden’s modern oral nicotine market over the past 12 months. Imperial says the acquisition will more than double its existing share of the Swedish market. Helwit is also sold elsewhere in the Nordics, through European online channels and in selected UK retail outlets.
Sep.08
UK HMRC Urges Public to Report Suspicious Vape Shops in Crackdown on Tax Fraud, Money Laundering and Illicit Tobacco Sales
UK HMRC Urges Public to Report Suspicious Vape Shops in Crackdown on Tax Fraud, Money Laundering and Illicit Tobacco Sales
HM Revenue & Customs is urging members of the public to report vape shops, barber shops and other high-street businesses suspected of tax fraud, money laundering or other illegal activity, with informants not required to provide personal details. HMRC plans more than 30,000 interventions in 2026-27 targeting tax fraud, organised crime and illicit activity, including the sale of illegal vapes and tobacco. The push forms part of a broader UK effort to tackle organised crime on high streets, backed by a £30 million government enforcement programme.
Regulations
Aug.17 by 2Firsts Perspectives
2FIRSTS EXCLUSIVE|China Breaks Up $6.8 Million Illegal Hookah Tobacco Operation as Market Expands
2FIRSTS EXCLUSIVE|China Breaks Up $6.8 Million Illegal Hookah Tobacco Operation as Market Expands
Chinese authorities have dismantled an illegal hookah tobacco operation worth more than 46 million yuan ($6.8 million), detaining five foreign suspects and seizing over 500,000 boxes of tobacco paste. The case comes as hookah expands across China’s nightlife sector and attracts overseas operators, including former vaping entrepreneurs. It also raises a central regulatory question: whether waterpipe tobacco will follow China’s private-sector e-cigarette licensing model or be reserved for the state tobacco system, as with nicotine pouches, in the years ahead.
Jul.31
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia’s tobacco excise debate is increasingly exposing differences within the governing Labor Party. New South Wales Labor Premier Chris Minns reaffirmed on September 8 that he supports reducing tobacco excise, arguing that current tax settings are pushing consumers toward cheaper black-market cigarettes. Federal Health Minister Mark Butler continues to oppose an excise cut, while Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino have recently stopped short of ruling out future changes. The divergence follows the opposition Coalition’s proposal to cut tobacco excise by 80%.
Sep.08
UK Vape Maker Riot Enters Clacton By-Election to Fight Government 'White Packaging' Proposals
UK Vape Maker Riot Enters Clacton By-Election to Fight Government 'White Packaging' Proposals
British e-liquid manufacturer Riot Labs has introduced a fictional “candidate” called Riot Man around the Clacton parliamentary by-election, seeking to mobilize consumers and retailers against parts of the UK government’s proposed restrictions on vape packaging, device appearance and retail displays. Riot Man is not listed as an official candidate.
Aug.12
UK Directors Banned After 352,688 Vapes Imported From China Were Misdeclared as Medical Nebulizers in £15 Million Tax Case
UK Directors Banned After 352,688 Vapes Imported From China Were Misdeclared as Medical Nebulizers in £15 Million Tax Case
The UK Insolvency Service said YSK Enterprises imported large quantities of vapes from China in 2023, with a shipment addressed to the company declared as medical nebulizers before Border Force found 352,688 vaping products. HMRC calculated nearly £15 million ($20.3 million) in unpaid VAT and customs duty, alongside about £437,000 in corporation tax. Two directors were disqualified for nine years. The case predates the UK's Vaping Products Duty, which will introduce vape-specific excise and duty-stamp requirements from October 2026.
Regulations
Sep.11