New year to make new problems for tobacco companies

Cigarette Plie

The provisions of the Ministry of Health’s new legislation were first released to the Russian press in August 2011. The disclosure of the coming ban triggered a stir in Russia, separating society into supporters and opponents of the law. The latter state it is “not a law against smoking, but against smokers” and its implementation will damage many small businesses.

The changes of the law that will have consequences such as total public smoking ban beginning in 2015. In addition, cigarettes will be banned not only in bars, restaurants, night clubs, but also, on board long-distance trains and passenger ships. Not only smoker won’t be able to smoke in the standing areas between spaces, but stops will also be smoke-free, since smoking at train stations will be off-limits.

Also questionable are the suggested bans on the vending of cigarettes at small shops and the demonstration of tobacco products. Legislators claim that the measure is meant to protect children from smoking and to improve the government’s power to observe conformity with the law {banning the sale of cigarettes to minors everywhere.

Small businesses definitely are against such laws. They consider that cigarette sales produce about 50% of their cash flow. Based on small retail organizations, the loss of cigarettes will push many to close down store and fire out employees.

As for the limitation on floor space, kiosk proprietors say about major retailers, which make just under 10% of all cigarette sales. Tobacco retail in Russia is determined}to be worth $12 billion a year, major retailers would definitely accept a larger part of the market.

The new government accepted the tobacco control law without further ado, and on October 31, 2012, it was presented by the government to the State Duma. Before New Year’s, parliament approved the new law on its first reading, but the results are estimated to be held in 2013.

Some standard changes will be made before the second reading, and Prime Minister Medvedev has already explained that the government is set to soften some of the provisions.

Similar Posts:

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>