NATALIA ISAEVA ABOUT A MINIMUM RETAIL PRICE FOR TOBACCO PRODUCTS

The issue was raised by the Deputy Head of FAS Financial Control Department Natalia Isaeva at the Round Table on “Growth of illegal tobacco products circulation: a threat to the economy and national security of the Russian Federation”

On 19 December, participants of the tobacco market and the regulators met at the State Duma to discuss measures for countering illegal circulation of tobacco products on the Russian market. One of the initiatives is to introduce a minimum retail price (MRP) for tobacco products.

“Perhaps, this measure is necessary but it should be adopted in combination with control measures that would suppress entry of illegal products to Russia and their movement across the country”, emphasized Natalia Isaeva.

Deputy Head of FAS Financial Control Departmentdrew attention to heavy over-regulation of the legal market of tobacco products, which creates room for illegal business.

Natalia Isaeva concluded that “if we introduce some additional control measures for bona fide market participants and at the same time do not suppress illegal trade with tobacco products, in view of not very high buying capacity of the population and a temptation to buy cheaper cigarettes, it can lead to an opposite effect. Therefore, FAS believes that we should approach the issue of setting the minimum retail price very carefully”.