Russian lawmakers are advancing a legislative initiative to introduce licensing for the sale of tobacco products, including cigarettes, vapes, and hookah products. The proposal, supported by the State Duma Committee on Economic Policy, aims to legalize the market, reduce counterfeit goods, and increase tax revenues.
According to committee chairman Maxim Tolilin, the licensing measures are expected to create conditions for market legalization and reduce the circulation of illicit products. He noted that the share of counterfeit cigarettes in sales is estimated at 9.5%, while for vapes, it is significantly higher, potentially exceeding 90% according to market players. The proposed licensing system is seen as a way to curb these violations, particularly sales to minors.
Wholesale licenses will be issued by Rosalkoholtabakkontrol (the Federal Service for Alcohol and Tobacco Regulation), while regional authorities will handle retail licenses. Businesses will need to register in the "Chestny ZNAK" (Honest Sign) marking system and meet certain operational requirements, such as having a minimum retail space of five square meters, which regional authorities can increase to ten square meters. The phased implementation includes license issuance starting March 1, 2026, with sales without a license becoming illegal from September 1, 2025, and a transition period for businesses until September 2027. Deputy Chairman Artyom Kiryanov believes licensing will significantly reduce legal violations and the volume of illegal goods.
