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Russia's Duma Backs Tobacco Licensing and Retail Penalties in First Reading

The bills aim to curb illicit tobacco sales, with licensing and penalties phased in beginning in 2026.

Overview

  • Lawmakers approved at first reading a government bill to license wholesale, retail and itinerant sales of tobacco and nicotine products across Russia.
  • Licensing is slated to open from March 1 to September 1, 2026, with a ban on trading without a license from September 1, 2026 and a retail transition period through September 1, 2027.
  • A companion bill extends existing criminal liability to retail sales without a license starting September 1, 2026 in large and especially large cases, with fines up to 3–4 million rubles and prison terms up to five years.
  • Key license conditions include fees of 800,000 rubles for wholesale and 20,000 for retail, a minimum five square meters of trading space, no tax arrears, product marking compliance and license terms up to five years.
  • Rosalkogoltabakcontrol would issue and revoke wholesale licenses while regions would issue retail and itinerant licenses, and the Duma is also set to review in second reading a bill expanding benefits for holders of the Mother Heroine title including an optional monthly payment over 72,000 rubles.