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.

Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Swedish nicotine pouch brand Kelly White is building its strategy around adult female consumers. Founder and CEO Sophia Wilsby told 2Firsts that women accounted for around 70% of the brand’s repeat customers on HAYPP in Sweden in 2025. The interview explores female consumer segmentation, product and design differentiation, gender stereotypes, packaging regulation, and how independent brands can compete with global players such as ZYN and VELO while considering funding, partnerships and future ownership options.
Business
Sep.24
NAS 2026 | Cliff Douglas: Risk Continuum Should Play a Central Role in Tobacco Policy
NAS 2026 | Cliff Douglas: Risk Continuum Should Play a Central Role in Tobacco Policy
Cliff Douglas, a veteran U.S. tobacco-control and public health policy figure, told NAS 2026 that the “continuum of risk” should play a central role in tobacco policy. He called for clearer market pathways, stronger risk communication, differentiated regulation and enforcement, and said possible FDA reforms to PMTA reviews could be a “welcome correction” if they create a more efficient, predictable route for scientifically substantiated lower-risk products. Read 2Firsts’ on-site coverage.
Sep.26
Spain Cigarette Volumes Fall 5.2% in August, BAT Drops 14.5%, JTI Gains Share; France Down 8.3% on Adjusted Basis
Spain Cigarette Volumes Fall 5.2% in August, BAT Drops 14.5%, JTI Gains Share; France Down 8.3% on Adjusted Basis
Spain's cigarette volumes declined 5.2% year over year in August 2026, according to government data cited by UBS and reported by Investing.com on October 7. British American Tobacco's volumes fell 14.5%, followed by Imperial Brands at 8.8%, Philip Morris International at 6.6% and Japan Tobacco at 4.6%. JTI was the only one of the four companies to gain cigarette market share, rising six basis points to 26.7%. In France, official customs data showed an unadjusted 3.7% decline in cigarette deliveries. Adjusting for the difference in delivery days produces a decline of approximately 8.3%, consistent with the UBS figure. The bank also estimated the earnings exposure of major tobacco companies to both markets.
Market
Oct.13
2Firsts Compliance Solutions Hosts PMTA Briefing on FDA Review Signals After JUUL2 Authorization
2Firsts Compliance Solutions Hosts PMTA Briefing on FDA Review Signals After JUUL2 Authorization
Following recent FDA authorizations for JUUL2 and ZYN ULTRA, 2Firsts Compliance Solutions held an online PMTA briefing on Sept. 4 to examine what the decisions may signal about review efficiency, scientific evidence and U.S. market access. Nearly 30 participants from brands, manufacturers, compliance service providers and investment firms joined the discussion.
2Firsts Events
Sep.06
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
KT&G will launch the lil Tonino Lamborghini heated tobacco device in Seoul on September 15, 2026. The product introduces a new heating technology called Flashwave Heating, which uses microwaves to heat tobacco sticks internally and delivers a manufacturer-rated heat-up time of about three seconds. The device features an all-metal aluminum body, a color display and a dedicated GUI, and launches alongside a new line of NAU tobacco sticks that are incompatible with existing lil consumables. Korean media describe the product as KT&G's first new heated tobacco platform since lil AIBLE was introduced in 2022.
Aug.31
Product | KIWI Launches Spark 2 and Spark 2 Pro in Germany, Two Hardware Tiers Share Backward-Compatible 2ml Pods
Product | KIWI Launches Spark 2 and Spark 2 Pro in Germany, Two Hardware Tiers Share Backward-Compatible 2ml Pods
KIWI has launched the Spark 2 and Spark 2 Pro refillable pod systems in Germany at official prices of €18 and €29, respectively. Spark 2 uses an 800mAh removable lithium-ion battery in a pen-style body, while Spark 2 Pro features a 1,400mAh removable battery, a box-shaped design and vibration feedback every 20 puffs. Both devices use the same 2ml Spark V2 pods in 0.8Ω and 1.2Ω versions, with AirSync airflow adjustment and a choice between Cotton Tips and conventional Drip Tips. The new pods also remain compatible with the original KIWI Spark.
News
Sep.29 by 2Firsts Perspectives