Russia Proposes Tobacco and Vape Sales Licensing

Russia Considers Licensing Tobacco Sales and Tightening Online Regulations

Russian lawmakers have proposed new legislation that could reshape the landscape of tobacco and vaping product sales in the country, aiming to combat illegal tobacco trade and protect public health.

Federation Council Proposes Licensing for Retail Tobacco Sales

The Federation Council has submitted a bill to the government that would introduce licensing requirements for retail tobacco sales, similar to those in place for alcoholic beverages. This initiative aims to curb the illegal tobacco trade, which has seen a notable increase in recent years.

Key points of the proposed legislation include:

Applicants must submit copies of passports for main technological equipment
Applicants need to prove ownership or management rights for equipment
A mandatory state fee (amount yet to be specified)

The bill introduces steep penalties for selling unmarked tobacco and nicotine-containing products:

Individuals: 10,000 to 20,000 rubles
Officials: 30,000 to 50,000 rubles
Legal entities: 300,000 to 500,000 rubles

Lawmakers argue that current fines fail to deter illegal sales, as they pale in comparison to the profits from tobacco sales.

Rising Illegal Tobacco Trade

The Ministry of Finance reports that the share of illegal tobacco products in Russia increased from 11% in 2021 to over 13% in 2023. This surge in illicit trade has resulted in significant budget losses, estimated at 75 billion rubles for the first nine months of 2023 alone.

Crackdown on Online Tobacco and Vape Advertisements

The Moscow City Duma has developed draft amendments to the Code of Administrative Offenses, proposing hefty fines for online advertisements of tobacco and vaping products.

The proposed penalties are:

Citizens: 3,000 to 5,000 rubles
Officials: 20,000 to 40,000 rubles
Legal entities: 100,000 to 300,000 rubles

This initiative responds to the identification of 471 potentially dangerous internet resources offering or advertising nicotine-containing products between November 2023 and January 2024.

Existing Regulatory Framework

Russia has already taken steps to regulate the tobacco industry:

An electronic register of licenses for tobacco product production has been in effect since September 1, 2023
Rosalkogoltobakkontrol has overseen the production and circulation of tobacco products since March 1, 2024, aiming to prevent violations and ensure compliance with supply, purchase, and transportation requirements

Looking Ahead

As these proposals progress through the legislative process, stakeholders in the tobacco and vaping industries should prepare for potential changes in the regulatory landscape. The outcomes of these initiatives could significantly impact how companies sell and advertise tobacco and nicotine products in Russia, with far-reaching consequences for both businesses and consumers.

News source:

За объявления о продаже табака в интернете предложили штрафовать на 300 тыс. рублей
В Совфеде предложили лицензировать розничную продажу сигарет

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.