Tobacco Asia

96 tobaccoasia Issue 5, 2026 September / October We'd like to let you in on an industry secret You can view the latest issue of TOBACCO ASIA magazine and TOBACCO ASIA's archived issues and searchable content at www.tobaccoasia.com All free. No passwords. No paywall. Just click and read. ENDS, while as many as 30 million consume alter- native tobacco and nicotine products overall. According to industry analysts, a nationwide ban on ENDS and other alternative nicotine prod- ucts would likely accelerate the growth of the illicit market rather than eliminate consumer demand. David Zaridze, head of the Clinical Epidemi- ology Department at the Blokhin National Medical Research Center of Oncology, argued that prohibi- tions would likely worsen, rather than resolve, the problem. He pointed to anti-alcohol campaigns in the US and the former Soviet Union as examples of policies that failed to achieve their intended re- sults. Instead, Zaridze said measures such as pro- hibiting cigarette sales to minors, restricting smok- ing in public places, expanding access to nicotine replacement therapy, and promoting smoking ces- sation would prove more effective. Against that backdrop, SUON has endorsed a proposal to establish a state monopoly on the production of nicotine-containing base liquids for ENDS and certain other alternative nicotine products. Under the proposal, the project would operate through a concession model in which pri- vate investors would manage production facilities while the state would hold an ownership stake in the operating company, giving authorities greater oversight of production, distribution, and regula- tory compliance. In its letter to the government, SUON also highlighted the outcome of Russia's previous ef- fort to curb ENDS use through higher excise tax- es. In 2024, authorities increased the excise duty on e-liquids by 110% to RUB42 per milliliter. The rate has since risen to RUB49 per milliliter. The mea- sure aimed to raise retail prices and reduce product accessibility, but SUON argued that it instead ac- celerated the growth of the illicit market. In fact, Russia's legal vape industry has al- ready moved underground since the beginning of 2024. As the excise duty more than doubled from RUB20 to RUB44 per milliliter, legal production became increasingly unprofitable. The number of companies officially manufacturing vape liquids fell from 117 to just five within a year. Industry representatives argue that Rus- sia's current excise tax rates have become prohibi- tive for the legal vape market. A 30 ml bottle of nicotine-containing e-liquid typically retails for RUB600–700, while the excise tax alone amounts to RUB1,320 for the same volume. The federal government is expected to con- tinue considering a nationwide ban on vaping products. The proposal gained additional momen- tum after president Vladimir Putin expressed sup- port in November 2025 for prohibiting vapes and nicotine-containing liquids. Russia's legal vape industry has declined sharply since early 2024 as excise duty more than doubled to RUB44 (US$0.56) per milliliter, driving registered manufacturers from 117 to just 5. Credit: Olenka Bohovyk, Pexels.

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