The Russian government is considering a total ban on the sale of vapes, and experts are concerned that the ban is leading to increased black market activity, affecting small businesses, and suggesting that policies should be optimized to prevent illegal trade.
Core points to watch:
1. The Russian parliament is discussing bills that could restrict or even ban the sale of vapes.
2. The ban could lead to the closure of small businesses, with consequences for the regional economy.
3. Experts recommend optimizing market policies to prevent underage access and illegal sales.
Russian parliament is discussing a bill that could restrict or even ban the sale of e-cigarettes
As reported by kp.ru on March 31, the government of the Russian Federation, as well as the State Duma, is discussing several bills that would make it significantly more difficult to sell vapes, and in fact, could lead to a total ban. The series of policies has sparked alarm among industry experts that such restrictions could push vapes into the underground market and potentially spread illegally through the internet.
Last week, Artem Kiryanov, deputy chairman of the State Duma Committee on Economic Policy, and Sergey Katasanov, first deputy chairman of the State Duma Committee on Budget and Taxes, organized two meetings of a committee of experts to consider changes to the relevant bill. Kiryanov emphasized that a total ban would not solve the phenomenon but rather trigger an increase in black market activity.
The ban could lead to the closure of small businesses, with consequences for the regional economy
Currently, about 170,000 registered stores sell tobacco and vapes in Russia, and small businesses in particular are the most affected. According to Sergei Borisov, president of the National Association of Small Businesses of Russia, more than 150,000 small and medium-sized companies may not be able to continue selling due to the ban, especially in inland urban areas.
The main bill, drafted by the finance ministry, involves strict restrictions on store size, location and storage requirements. Nonetheless, many experts consider the proposals outdated and lacking a realistic basis. The authorities should consider reducing the economic burden so that small businesses are not forced to switch to illegal trade.
In addition, the bill empowers regions to impose additional restrictions, which could lead to market disruption. Gennady Spirchagov, chairman of the Ulyanovsk provincial government, said that many regions do not have the financial resources to set up new control bodies, making it difficult to enforce regulations.
Experts recommend optimizing market policies to prevent underage access and illegal sales
However, not everyone is against regulating the vape market. From December 2023, vapes will be included in the “Honest Mark” system. Despite the decrease in illegal circulation, experts say that the share of the compliant market is still low. Investigations by the Russian Consumer Protection Agency show that some stores are penalized for not being registered.
Currently, legal and illegal products coexist, and the price gap affects market choices. Vladimir Mishelovin, a member of the industry association, suggested lowering taxes to reduce the demonization of the market, promote legal trade and protect the health of the market.
The sale of vapes to children has been banned in Russia since September. Technically, facial recognition payment systems may be applied to confirm the age of cigarette buyers, but legal restrictions have not yet lifted this feature.
If the sale of vapes is completely banned, experts predict an increase in the underground trade. Konstantin Kuntz, a member of the Public Council of the Russian Ministry of Health, warned that tobacco dependence is a disease that could exacerbate the demand for other addictive products if legal products are not easily accessible.
