Russia's Illegal Tobacco Trade Results in 815 Billion Ruble Losses

May.05.2023
Russia's Illegal Tobacco Trade Results in 815 Billion Ruble Losses
Russia estimates illegal tobacco trade losses will reach 81.5 billion rubles in 2022. Measures, including product tracing, are being proposed.

On April 28th, Vladislav Zaslavsky, acting director of the Department of Digital Commodity Identification Systems at the Russian Ministry of Industry and Trade, announced that the losses caused by illegal tobacco transactions in Russia in 2022 amounted to 81.5 billion rubles.


He made this statement during a roundtable aimed at combating the illegal trade of tobacco and nicotine products. These figures are estimated by the National Scientific Center for the Suppression of Illicit Industrial Products (ANONNCCK).


According to the largest estimate, this number exceeds 100 billion rubles.


Zaslawski also stated that, according to ANONNCCK's data, the proportion of illegal cigarettes among smokers in 2022 is 12.2%.


He stated, "By the end of 2022, the market share of illegal nicotine products had reached 79%, with illegal e-liquid accounting for 93% of that. This further adds to the estimated national loss of 3 billion rubles.


According to him, this market is expected to undergo fundamental changes with the implementation of specialized legal regulations for tobacco and nicotine products. The bill is currently going through its second reading in the national parliament.


He reminded that the bill provides for a mandatory licensing system for the production and import of tobacco, nicotine products and raw materials. Manufacturers must register the main equipment used to produce their products and take other measures to clean up the market.


The proposed bill suggests transferring the authority to regulate the tobacco market from the Ministry of Agriculture to the Ministry of Finance, and restructuring the Russian alcohol regulatory agency to create a federal agency responsible for monitoring the alcohol and tobacco markets, known as the Russian Alcohol and Tobacco Control Authority.


According to the participants of the roundtable discussion, the spread of illegal products was partly due to the suspension of commercial inspections.


In this scenario, Zaslawski believes there should be a shift towards risk-based regulation.


A marking system that provides product traceability (honest labeling) could become the foundation of a risk management system. It is now necessary to align regulatory frameworks with the data used in the system in order to achieve regulatory oversight.


He said that 11 indicators have been developed to identify potential violations in the tobacco market.


According to data from the Russian Statistics Agency, cigarette production in Russia decreased by 7% in 2022 compared to the previous year, with a total of 22.2 billion cigarettes produced.


Related Reading:


Russia seized smuggled cigarettes worth 4 million yuan.


The regulatory authority over the tobacco market in Russia is set to be transferred from the Ministry of Agriculture and Taxation to the Ministry of Finance.


A roundtable discussion on the issue of illegal tobacco trafficking was held in Orenburg, Russia.


Russia seizes a batch of tobacco products without "honest labeling" valued at 50 million rubles.


Reference:


The Ministry of Industry and Trade estimates that the illegal tobacco trade will cause a loss of 81.5 billion rubles to the budget in 2022.



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.

Russia Expands Temporary Administration of JTI Assets in Second Round: From Four to All Seven Russian Entities, With Approximately $9.5 Billion in Related Assets
Russia Expands Temporary Administration of JTI Assets in Second Round: From Four to All Seven Russian Entities, With Approximately $9.5 Billion in Related Assets
Japan Tobacco Inc. (JT) confirmed on November 9, 2026, that all seven of its Russian entities had been placed under temporary administration after a second presidential decree added three companies to the four designated a day earlier. The additional entities are associated with importing, management, holdings and the former supply of Ploom heated-tobacco devices. JT disclosed approximately ¥1.5 trillion in Russian business-related assets as of September 30, including ¥360 billion in cash and deposits, and approximately ¥200 billion in liabilities. Under its revised FY2026 forecast, Russia accounts for about 25% of adjusted operating profit. JT said operations in Russia were continuing, while the financial impact remained under assessment.
company
Nov.09
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
German prosecutors and customs authorities are conducting a criminal investigation into an alleged cross-border organised vape network. Authorities say that between January 2024 and March 2025, four employees of an unnamed Chinese e-cigarette manufacturer allegedly built a network of sales agents and wholesalers that brought more than 7.6 million nicotine disposable vapes into Germany, causing an estimated €33.3 million in excise-tax losses. The manufacturer has not been named. Some products visible in enforcement images have packaging resembling products from FUMOT’s portfolio. European regulatory records from 2024, FUMOT’s public overseas-sales materials and records involving German vape importer and distribution company Zamu-Pro GmbH also show FUMOT/RandM products and German distribution activity during the period covered by the investigation.
Sep.21
Couche-Tard Posts Double-Digit U.S. Same-Store Growth in Other Nicotine Products, Led by Pouches
Couche-Tard Posts Double-Digit U.S. Same-Store Growth in Other Nicotine Products, Led by Pouches
Alimentation Couche-Tard said U.S. same-store sales in its “other nicotine products” category grew at a double-digit rate in the first quarter of fiscal 2027, led by nicotine pouches, while overall U.S. same-store merchandise revenues increased 1.7%. The company also said its Canadian nicotine business continued to face regulatory pressure and illicit-market headwinds. The U.S. performance coincides with Couche-Tard's participation in efforts to reopen Canadian convenience-store access to authorized nicotine pouches, though the company has not established a direct causal link between the two.
Sep.14
UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
UK-listed consumer goods group Supreme plc says it continues to expect FY27 trading to meet market expectations as the Vaping Products Duty takes effect on October 1, while maintaining a comparatively positive view of the new tax and compliance regime. Supreme has said the framework could increase compliance complexity for smaller operators and contribute to market consolidation, while its manufacturing, compliance and distribution scale may allow it to gain share. Its 88Vape brand will retain its value positioning.
Sep.18
Product | Juul Labs Launches Upgraded JUUL2 Kit in UK With Four Pods at £9.99 and USB-C Charging
Product | Juul Labs Launches Upgraded JUUL2 Kit in UK With Four Pods at £9.99 and USB-C Charging
Juul Labs UK has introduced an upgraded JUUL2 Starter Kit for the UK market in October 2026, retaining a recommended retail price of £9.99 while doubling the number of included pods from two to four. The kit contains Crisp Menthol, Virginia Tobacco, Mango and Watermelon pods. The updated device replaces the previous proprietary charging dock with a USB-C port and offers longer battery life. The kit also features reduced packaging and retains a two-year limited warranty. Distribution is scheduled through major UK retailers, wholesalers, convenience stores and the JUUL UK website.
product
Oct.15
Product | JT Launches Three Autumn-Limited Ploom Tobacco Sticks in Japan Across EVO, MEVIUS and CAMEL Brands
Product | JT Launches Three Autumn-Limited Ploom Tobacco Sticks in Japan Across EVO, MEVIUS and CAMEL Brands
Japan Tobacco Inc. (JT) launched three limited-edition autumn tobacco sticks for its Ploom heated tobacco devices in Japan on October 16, 2026, under the EVO, MEVIUS and CAMEL brands. All three are regular tobacco variants with seasonal packaging. Each pack contains 20 sticks, priced at ¥620, ¥590 and ¥570, respectively, including tax. The products are compatible with all Ploom devices and are sold in limited quantities exclusively through the CLUB JT online store while supplies last.
product
Oct.20