Russian watchdog proposes licensing tobacco retailers

MOSCOW. July 23 (Interfax) - Russia's alcohol and tobacco regulator has proposed to introduce licensing for retail sales of tobacco products.

"The issue of control over tobacco retailing is one of the most important. We propose to introduce licensing of retail outlets similar to alcohol, so that this issue is overseen exactly the same way by the authorities of constituent members of the Russian Federation. This will provide additional budget revenues and immediately reduce the share of illegal tobacco on the market,

Rosalkogoltabakkontrol head Igor Aleshin said in an interview with Rossiyskaya Gazeta.

He said 225 tobacco market participants have received licenses so far, of which 190 are producers and the rest are importers.

"And we're already seeing the effect of the introduction of licensing in the tobacco industry. There is growth of production, there is growth of excise revenues. The market is getting whiter. After all, if it suddenly comes to light that production is taking place on unregistered equipment, one can lose one's license. Producers don't need such risks," Aleshin said.

A provision of the Russian law regulating production and sales of tobacco products, nicotine-containing products and raw materials for their production that introduces licensing in these areas went into effect on March 1, 2024. Manufacturers are also required to register core equipment for making these products. If equipment is not used it must be mothballed.

The law does not call for licensing retail sales, but it does prohibit retail sales of tobacco and nicotine-containing products that are not in consumer packaging, and requires mandatory accompanying documents and marking in circulation.

The law, the main provisions of which went into effect on September 1, 2023, expanded the role of the former Federal Alcohol Market Regulation Service, giving it the right to regulate tobacco and nicotine-containing products and renaming it Rosalkogoltabakkontrol.