Starting in 2026, Russia will introduce mandatory licensing for the retail and wholesale of cigarettes and vaping products. Only businesses that obtain special state permission will be allowed to sell tobacco products, a move aimed at curbing the illegal market.
Under the new rules, retailers must have a trading area of at least 5 square meters, be free of tax debts, and pay a state fee. The proposed fees are 20,000 rubles annually for shops and 800,000 rubles for a five-year license for wholesalers. Currently, nearly one in ten tobacco products sold in Russia is illegal, with counterfeit rates for vapes exceeding 50%. The licensing system aims to eliminate low-quality products and strictly enforce the ban on sales to minors.
While this will impose additional costs and administrative burdens on small businesses, it is expected to level the playing field by removing unfair competition from unlicensed, tax-evading sellers. Authorities emphasize regulation over prohibition, noting that total bans in other countries often fuel black markets.
