NATALIA ISAEVA: OUR COMMON GOAL IS TO MAKE UNDERSTANDABLE RULES FOR MARKET PARTICIPANTS

Markets of nicotine-containing products definitely need clear regulation

On 27 November 2019, FAS Expert Council for developing competition on the tobacco product market discussed the current environment in the tobacco sector, including insufficient regulation of innovative products.

Opening the event, Natalia Isaeva, Deputy Head of FAS Fiscal Control Department, reminded that the RF Government signed the Concept of countering tobacco smoking, and the Road Map will be developed in the near future. As an interested party, the antimonopoly body hopes to be directly involved in drafting it.

“Recently, the Concept of countering tobacco smoking was adopted and FAS was actively involved in drafting it. And it is logical: nobody argues the harm of the product but it is not banned for circulation and is a significant source of excise revenue to the budget”, says Deputy Head of FAS Fiscal Control Department. “Therefore, taking decisions in the part of regulatory framework now and in the future, it is essential to keep the balance between the position of the Ministry of Healthcare, which justly talks about introducing measures to restrict consumption of nicotine-containing products, and the interests of legal business, which in their turn, must clearly understand the rules of the game. Unfortunately, these rules still are not approved for innovative nicotine-containing products. Therefore, our common goal today is to establish proper regulation at the federal level, based on which the market can work peacefully and justly”.

The Expert Council discussed market definition and segmenting. The point is that today there is now clear understanding of market boundaries for innovative products. During the discussion, a question was raised on performance of the market of innovative nicotine-containing products, mostly associated with absence of relevant regulatory acts.

All experts underline that counterfeit products in Russia are growing. At the same time, the big problem is that so far there are no official studies of shadow turnover of such products.

Representatives of tobacco companies also highlighted their proposals to ban innovative nicotine-containing products for minors and limit nicotine content in such products.

Having heard proposals of the market participants, Natalia Isaeva emphasized, “it is very nice to see a positive example of a sector where companies consciously aspire self-regulation”.

Public declaration of bona fide market participants is one of self-regulatory tools. It declares companies’ refusal to sell their nicotine-containing products to underage consumers and stop marketing activity that targets consumers under 18 years old. The Expert Council was asked to discuss expanding the current provisions of the Declaration at the next session, adding other types of nicotine-containing products.