As of September 1, Russia will implement a new price control policy for cigarette substitutes, which could increase the price of vapes fivefold. The new regulations, which will set a minimum retail price, are expected to significantly increase consumer spending and may lead to a decrease in the use of “alternative” smoking products.
Russia has implemented a new policy on tobacco alternatives since Sep
As of September 1, 2024, Russia will significantly increase the price of cigarette substitutes, Bst. Bratsk reported on August 28th.
The Russian government will control the minimum price of vapes, cartridges, hookah mixtures (including smokeless), and vape oils, which will lead to price increases. The price of some consumables will increase four to five times.
Russia will introduce new requirements for the sale of tobacco products and set minimum retail prices for such goods based on these requirements (МРЦ). These new measures are referred to by market participants as a “ban on excise taxes”. These measures are likely to significantly reduce the popularity of “alternative” smoking and force many Russians to inhale traditional tobacco again.
It is reported that merchants have until the end of August to adjust the prices of their products to meet the new regulations, i.e. the price floor set by Law No. 301 of March 14, 2024, which will be applied to the price of cigarettes. However, due to a legal loophole, they were required to adjust their prices twice, which will come into effect on September 7. МРЦ Decree of the Government of the Russian Federation No. 1050 of August 5, 2024, was issued and confirmed. This week, the temporary МРЦ will be high (for example, the temporary МРЦ for 30 ml of vape tar cigarettes this price will be reduced to 1,800 rubles [about $20] from Sep 8, which is 2,130 rubles (about $23).
The price of e-cigarettes could rise fivefold
The new rules will apply to all products containing smoking tar, including canned tobacco oils, prefilled cartridges, and disposable vapes.
According to Article 7, paragraph 6 of Federal Law No. 203-FZ of June 13, 2023, the government will convert the minimum price of these products based on a formula that includes the excise tax rate, the value-added tax (VAT) rate, and the value-added index.
Although Law No. 1050 slightly eases the burden, consumer spending on smoke tar goods will still increase significantly. For example, the minimum retail price (МРЦ) for vape oils (with and without smoking tar) will reach 60 rubles per milliliter (about $0.60), and the price of standard 30mL cans will reach 1,800 rubles (about $20). This price is almost five times higher than the current price, which is 500 rubles (about $5) (according to the data of the “Mark of Integrity” system). Roughly speaking, the current cost of consuming 120mL (4 bottles of 30mL) of vape oil per month is about 2,000 rubles (about $22). And from September 7, the same tobacco oil will cost 9,504 rubles (about $104). (МРЦ RUB 1,800 [~US$20] / 30mL Standard price increase of 10% for dealers Total RUB 2,376 [~US$26], price increase of 20% for retailers.
Each milliliter of oil in a prefilled cartridge or capsule will cost 76 rubles ($0.80), and each three-milliliter cartridge costs 228 rubles ($2.50); in disposable smoke tar systems, the minimum price of oil is 101 rubles [$1.10] per milliliter (10,000 inhalations contain 14mL, or 1,414 rubles [$15]).
The mg excise tax on vape oil (containing 0.14 years of liquid smoking tar) is 21 rubles ($0.23) per mL, rising to 22 rubles ($0.24) in 2025. The excise tax on heating cigarettes is set at 9016 rubles ($99) per kilogram in 2024, rising to 9377 rubles ($102) in 2025.
Conclusion
At the end of April of this year, the Duma discussed a proposal for a total ban on the sale of vapes in Russia. At the end of May, the Duma and the Russian government announced their plans to tighten restrictions on tobacco and tar products, including raising fines for smoking in no-smoking places and imposing the maximum fine of rubles ($77) on parents of minors under the age of 16 who smoke.
