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State-owned smoke: sale of tobacco without a license will be included in the Criminal Code
Criminal liability may be introduced for the retail turnover of tobacco and nicotine—containing products without a license - such a bill was approved by the Cabinet of Ministers of the Ministry of Finance. Violators will face a fine of up to 1 million rubles and imprisonment for up to three years. Currently, regulation of tobacco products in Russia is based primarily on administrative responsibility, which is why there is a high level of illegal supply, experts stressed. The authors of the bill hope to reduce the volume of illegal sales in this segment. See the Izvestia article about how the amendments will work and what problems the Russian tobacco market is facing.
What is the penalty for selling without a license?
Starting from September 1, 2026, Russia may introduce criminal penalties for the retail sale of tobacco and nicotine-containing products without a license. Such a bill by the Ministry of Finance was approved by the government commission on legislative activity on Monday, September 22, a source in the Cabinet of Ministers told Izvestia.
Changes are planned to be made, in particular, to the article "On illegal entrepreneurship" of the Criminal Code of the Russian Federation. Currently, the system of regulating the turnover of tobacco and nicotine-containing products in Russia is based primarily on administrative responsibility, recalled Vladimir Kuznetsov, chairman of the All-Russian Trade Union of Mediators.
"The Code of Administrative Offences of the Russian Federation provides for penalties for trafficking in such products without an appropriate license, if it is mandatory," the expert explained. — This means that administrative responsibility is already provided for production, supply, purchase, including importation into and export from Russia, storage, as well as wholesale without a license.
However, retail sales without a license still do not entail criminal penalties, which creates certain loopholes for unscrupulous market participants, said Vladimir Kuznetsov.
The bill proposes to fine 500,000 to 1 million rubles for the retail sale of tobacco products on a large scale without a license. The violator can also receive a real term of up to three years in a penal colony.
"If the acts are committed by an organized group or on a particularly large scale, they are punishable by a fine of 3 million to 4 million rubles or imprisonment for up to five years. The cost of tobacco or nicotine—containing products exceeding 100 thousand rubles is recognized as large, and 1 million rubles is especially large," the document says.
According to the authors, the introduction of criminal liability will prevent illegal products from entering the market, which will contribute to additional revenues to the federal budget.
"The effective date corresponds to the effective date of the requirement for a mandatory license for the retail sale of tobacco products," the explanatory note to the bill says.
What other restrictions await the tobacco market
At the same time, two more draft laws related to the turnover of tobacco products were considered. In particular, amendments to the law "On State Regulation of the Production and Turnover of Tobacco Products, Tobacco Products, nicotine-containing products and Raw materials for their production," said Vladimir Gruzdev, Chairman of the Board of the Russian Bar Association.
"The issuance and cancellation of licenses for wholesale trade will be carried out by Rosalokoltabakcontrol, and for retail and delivery — by the relevant regional authorities," he said. — The current version of the draft law provides for the requirement that in order to obtain a license for a tobacco store, a long-term lease agreement for a period of one year or more is required. However, this provision and some others may be amended in the future in accordance with the recommendations that were supported during the discussion of the draft law.
To obtain a license, there must also be no tax arrears of more than 3 thousand rubles, as well as the state fee for issuing a license.
Additionally, corresponding changes are being made to other laws, the expert added. For example, in the Tax Code, which sets the amount of state duty that must be paid to obtain a license: 800 thousand rubles for wholesale trade, 20 thousand rubles annually for retail and delivery.
— The draft laws are aimed at strengthening control over the sale of tobacco and nicotine—containing products, as well as at combating the sale of low-quality products, which will certainly lead to a decrease in their consumption, - said the Chairman of the Board of AYUR.
How does illegal tobacco trafficking work?
The proposal to criminalize the retail sale of tobacco and nicotine—containing products without a license is a significant step in the fight against the illegal market, Vladimir Kuznetsov confirmed to Izvestia.
"The illegal tobacco market continues to flourish, generating huge revenues for the shadow sector and damaging the state budget," he said.
According to Vladimir Kuznetsov, the absence of criminal sanctions for the retail sale of tobacco without a license allows minor violators to evade serious responsibility, which contributes to the spread of counterfeit and illegal products.
"The Russian tobacco and nicotine—containing products market is facing a number of serious problems, the main of which is the high level of illegal trafficking," he said. — According to experts, the volume of the illegal tobacco market in Russia leads to multibillion-dollar losses for the treasury. The absence of the need to pay taxes and excise taxes allows unscrupulous sellers to offer goods at significantly lower prices. This attracts consumers and creates unfair competition for legitimate market participants.
The amendments actually close the last significant loophole in the legislation, making the entire cycle of tobacco product turnover — from production to retail sale — controllable, the lawyer believes.
— To achieve maximum effect, it is necessary to strengthen not only punitive measures, but also control over compliance with licensing requirements. And also to conduct information campaigns for consumers about the dangers of illegal products," he added.
When preparing the draft law on the introduction of criminal penalties for the sale of tobacco without a license, the article of the Criminal Code of the Russian Federation "On the production, acquisition, storage, transportation or sale of goods and products without labeling and applying information provided for by law" was taken as the basis, lawyer Gennady Kuzmin believes.
— It provides for punishment (in the form of a fine from 700 thousand to 1 million rubles or imprisonment for up to three years) for the sale of tobacco products without labeling, that is, counterfeiting. Now we are talking about the introduction of penalties for the sale of regular cigarettes, but without a license," the lawyer explained.
At the same time, if a legal entity or an individual entrepreneur is prosecuted under this article for the first time, he will most likely be fined. And in case of repeated offenses, the defendants face a real term, the expert noted.
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