The EU imposed sanctions on tobacco products: is it worth waiting for a rise in the price of cigarettes

It would seem that our Western enemies have already introduced all possible restrictive measures against Moscow. But no, the EU has already practically approved a new, 8th package of sanctions. There is a fad that will touch many Russians, as they say, to the quick. Europe wants us to restrict the import and export of tobacco products.

Anyone can offend a smoker. At one time, when we launched the fight against tobacco smoking, it was believed that we were on the right track, that the nation, according to Dmitry Medvedev, would only become healthier by giving up this bad habit.

There are no exact statistics on quitting smoking and encouraging others to do so. But cigarettes have gone up in price since then. Judge for yourself: in 2013, when the anti-tobacco law was adopted, a pack of cigarettes cost an average of 20-30 rubles (imported – 40-50). This cost included all expenses: raw materials, salaries, taxes, excises, even the profit of the enterprise.

Today, the average price of a pack of cigarettes is 150 rubles. However, approximately 70% of this amount is taxes that go to the state treasury. And it seems that the authorities are not so much fighting for the health of the nation as replenishing their budget at the expense of unfortunate smokers. Even those who smoke some half a pack a day (nothing at all) admit that the prices are simply unbearable. What can we say about serious smoking rooms?

It is clear that the state in this case is more interested not in retail prices for tobacco, but in counterfeit products and illegal producers who evade paying taxes. This question is what is called, keeps under vigilant control.

This year, the organization ANO “NNCC” conducted a fundamental study on this topic. Covered more than 1000 settlements with a population of about 87 million people. The researchers collected approximately 70,000 empty cigarette packs to determine the percentage of counterfeits. Most of all illegality was found in the Novgorod region (43.6%), in Rostov (40%), Kabardino-Balkaria (34.4%) and then in descending order – in the Yaroslavl, Smolensk and Bryansk regions. Less than one percent (!) ended up in Sakha-Yakutia and the Komi Republic.

In general, 12.1% of counterfeit products were recorded on the tobacco market last year. Why the budget lost about 113 billion rubles. And the government intends to fight this financial evil in the future.

However, many Russians are concerned about quite everyday questions – what will happen to tobacco prices in the future? They are already unbearable for many, but what if the European Union adds its fly in the ointment?

We asked Andrey Loskutov, an expert on the tobacco market, about this.

– How can a ban on deliveries of tobacco products from Europe to Russia affect our pockets?

– The volume of imported cigarettes is regulated not by the European Union, but by the Russian government. Annually setting both quotas for supplies and the minimum cost of a pack: today it is 112 rubles. Tobacco products are practically not supplied to us from the European Union at the present time. Raw materials for production in domestic factories go through European countries. Logistics has become more complicated, however, it is building up, the market is finding new channels. There is no need to fear that the cost of cigarettes will skyrocket due to the 8th package of sanctions.

– Where do we buy raw materials – tobacco and paper?

– In countries with which long-standing partnerships have been established since the tsarist and Soviet times. Therefore, there is no need to show much concern due to a possible shortage of products. This is a traditional relationship.

– The volume of counterfeit products on the tobacco market may increase if the EU introduces its own measures?

– Illegal production on the territory of Russia does not exist because there is not enough capacity at licensed enterprises. And due to the fact that illegal business avoids paying taxes. And for him, the profit from cigarettes turns into El Dorado, into an oil well in terms of income. If you buy a pack of cigarettes worth less than 112 rubles, be aware that this is counterfeit.

– We are already accustomed to Western brands of cigarettes. Now the West can deprive us of these names? Or, given that raw materials will continue to flow, will we start releasing the same cigarettes under new names?

– If the brand owner leaves our market, he will take the brand with him. And there is no point in doing the same thing, but under a different name. In Russia there is an Institute of Tobacco and Shag, perhaps the only one in the world. He will certainly develop and offer his recipe to our assortment.

– So maybe the traditional Belomorkanal or Prima will return to our market?

– The equipment that used to produce Belomorkanal was preserved only at one enterprise, but other cigarettes are made there. The last stocks of Prima in the country were sold four years ago. Who will buy it for 112 rubles per pack? She is uncompetitive. The Soviet cigarette weighed 2 grams, modern – less than a gram. Most likely, these tobacco products can only be seen as museum exhibits.