Russia Implements Nicotine Production License and Minimum Retail Price System for Electronic Cigarettes

The nicotine production license and minimum retail price system in Russia officially came into effect on September 1st. In March of this year, the licensing bill for the production and distribution of nicotine products was approved during a government meeting. In April, the Russian State Duma passed a motion with over 90% of votes in favor to establish a minimum retail price for electronic cigarette products.

Nicotine Production and Distribution License System

This legislation requires licenses for the production and importation of tobacco, nicotine-containing products, and production materials. Additionally, producers are obliged to register the main equipment used for manufacturing such products. If the equipment is not in use, it must be sealed. Equipment used in illegal production will be confiscated. Records of products and materials will be maintained in the “Honest Label” labeling system, ensuring comprehensive government oversight, as explained by the Ministry of Finance.

The legislation also includes other measures to prevent illegal production and trade, such as prohibiting the sale of tobacco products and nicotine-containing products in non-consumer packaging and requiring the presence of accompanying documents and labels in their transactions.

The Nicotine Production License System requires a license for the production and distribution activities of tobacco, nicotine products, and materials. The licenses are divided into six categories: materials production license, product production license, product import license, materials import license, cigar production license, and duty-free shop sales license.

Minimum Retail Price System for Electronic Cigarettes

The selling price of nicotine-containing products must not be lower than the minimum price set for such products. The minimum price for nicotine-containing products is determined by the Russian federal government. The Russian Federal Law N15-FZ establishes the minimum retail price (EMCTP) for tobacco products, which serves as the basis for calculating consumption taxes, value-added taxes, and other fees imposed by the Russian federal government. It also specifies that the retail price of any tobacco product must not be lower than the minimum retail price.