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.

Retail Case Study | Wisconsin Vape Market One Year After New Regulations: Johnny Vapes Reports 80% Sales Decline as Consumers Shift Online and Across State Lines
Retail Case Study | Wisconsin Vape Market One Year After New Regulations: Johnny Vapes Reports 80% Sales Decline as Consumers Shift Online and Across State Lines
According to WNCY on August 24, 2026, some independent vape retailers in Wisconsin say they have faced significant business pressure one year after new vape regulations took effect. Johnny Vapes, a retailer operating in northeast Wisconsin, said its store count fell from seven locations to four, sales declined by about 80%, and roughly 90% of its inventory was affected. Retailers said some consumers have shifted to online purchases or traveled to neighboring Michigan to buy vape products. The case highlights how local regulations can reshape retail operations, inventory management and consumer purchasing patterns.
Aug.28
InterTabac 2026: Further Sessions on Regulation, Market Access and Innovation Confirmed; 2FIRSTS to Host China Market Forum
InterTabac 2026: Further Sessions on Regulation, Market Access and Innovation Confirmed; 2FIRSTS to Host China Market Forum
InterTabac 2026 will bring together international experts to discuss European regulation, tax policy, Track & Trace, market access, retail impacts, consumer behavior and innovation. Sessions will also examine Poland’s tobacco-growing perspective and the growing fragmentation of Europe’s tobacco and nicotine market. Media partner 2FIRSTS will host the second “2FIRSTS Connect at InterTabac” on September 16, focusing on developments in China’s tobacco and nicotine industry.
Aug.06
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece have opposed Ireland’s proposed nicotine product regulations, arguing that the measures could affect EU market coordination and the free movement of products. Ireland plans to introduce stricter rules covering nicotine products including vapes and nicotine pouches, with measures involving packaging, marketing and sales controls. The dispute highlights differences among EU member states between stronger public health protections and maintaining regulatory consistency within the bloc’s single market.
Jul.29
Charlie’s Says 30 PACHA Vape SKUs Tentatively Identified for FDA’s Non-Priority Enforcement Public List
Charlie’s Says 30 PACHA Vape SKUs Tentatively Identified for FDA’s Non-Priority Enforcement Public List
Charlie’s Holdings said the U.S. Food and Drug Administration notified the company on June 23, 2026, that 30 PACHA vape SKUs with submitted PMTAs had been tentatively identified for inclusion on a planned public-facing FDA webpage. Under enforcement guidance issued by FDA in May, the webpage is intended to identify certain unauthorized products for which the agency generally does not intend to prioritize enforcement of premarket authorization requirements. Charlie’s disclosed the development alongside second-quarter revenue of $3.8 million, up 116% year over year.
Aug.25
Product | JT to Launch MEVIUS Tropical Option in Japan, Expanding Ploom Tobacco Stick Lineup to 32
Product | JT to Launch MEVIUS Tropical Option in Japan, Expanding Ploom Tobacco Stick Lineup to 32
Japan Tobacco (JT) will launch MEVIUS Tropical Option, a new tobacco stick for Ploom, nationwide in Japan from October 6, 2026. The capsule-format product combines mango-oriented sweetness with menthol cooling, adding a tropical flavor to the MEVIUS Ploom tobacco-stick lineup for the first time. Each pack contains 20 sticks and will launch at JPY 590. The product is compatible with all Ploom devices, and its addition will expand the Ploom tobacco-stick portfolio to 32 variants.
Sep.08
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
According to the U.S. Department of Justice (DOJ), Fox News and other reports, the DOJ’s Trade Fraud Task Force (TFTF) has been linked to more than $1 billion in recoveries, penalties, forfeitures and publicly charged losses in less than one year. The task force focuses on trade fraud issues including country-of-origin fraud, illegal transshipment, false declarations and tariff evasion. While vape products are not the main source of the $1 billion figure, the industry’s reliance on global manufacturing and cross-border supply chains places it within broader U.S. trade enforcement scrutiny. The development suggests that U.S. oversight of cross-border vape products may increasingly extend beyond product authorization into import compliance, supply-chain transparency and corporate accountability.
Jul.23