Retail loss: regions have been given the right to ban the sale of vapes

Vapes have become one of the main channels for involving teenagers in nicotine consumption, and up to 80% of their sales are outside the official turnover, experts interviewed by Izvestia said. These factors, among other things, explained the adoption by the State Duma of the law on the regulation of the tobacco products and vaping market. According to the document, the regions were given the right to ban the retail sale of vapes and liquids to them, as well as other electronic nicotine delivery systems. The experimental regime will be in effect for five years — from March 1, 2027 to March 1, 2032. The new law also introduces mandatory licensing of retail and wholesale tobacco sales starting from October 1, 2026. About why new market regulation measures are needed, see the Izvestia article.

Who can ban the sale of vapes

The draft law on regulation of the tobacco products and vaping market developed by the Ministry of Finance was adopted by the State Duma on June 9 in the second and third readings. Starting from March 1, 2027, the subjects of the Russian Federation will be able to ban the retail sale of vapes on their territory for at least five years. The law will enter into force on October 1, 2026.

— This is a popular initiative to grant the right to regions to ban the sale of vapes. They differ from tobacco in that the flavors are addictive. They're delicious, tempting, and kids get hooked on it. Vaping is extremely harmful to health. But, on the other hand, they enrich those who sell them," said Vyacheslav Volodin, Chairman of the State Duma, stressing that the decision was made based on citizens' appeals in the interests of the people and the country.

Dmitry Gusev, First deputy chairman of the State Duma Committee on Control and deputy head of the Fair Russia faction, called on the regions not to be afraid to apply the law.

— It seems to us that prohibitions are bad. However, when our parents forced us to eat meatballs with mashed potatoes instead of sweets, no one said anything bad to them afterwards," he remarked.

According to Dmitry Gusev, there are tax evaders among the vape dealers. So, "tobacco brought more than 1 trillion rubles to the budget, and vapes — 11 billion," he noted.

Sergei Leonov, Chairman of the State Duma Committee on Health Protection, said that the youth parliament had conducted raids in 73 regions. They found violations in 80% of cases. Leonov is confident that the experiment to ban vaping will be successful and that most, if not all regions, will follow this path. According to Vyacheslav Volodin, the subjects of the Russian Federation can take advantage of the experience of the Nizhny Novgorod, Penza regions and the Perm Territory — restrictions have already been introduced there.

In practice, vapes have become one of the main channels for involving teenagers in nicotine consumption, Alexander Aksenenko, deputy chairman of the State Duma Committee on Construction and Housing, told Izvestia.

"Its compactness, lack of pronounced odor, and distribution through a digital medium have made these products especially accessible to minors," he explained.

According to him, granting the regions the authority to impose additional restrictions, if necessary, will allow them to respond more quickly to existing challenges and more effectively protect young people from the formation of nicotine addiction.

What kind of licensing has been introduced

Also, from October 1, 2026, licensing of retail and wholesale sales of tobacco and nicotine-containing products will be introduced. And from March 1, 2027, all sellers will be required to have a license.

"Monitoring compliance with licensing requirements minimizes the turnover of illegal products, including closing illegal points of sale. In addition, the new measures are designed to further protect minors from these products," said the office of Deputy Prime Minister Dmitry Grigorenko, who oversaw the preparation of the bill.

According to Rosalokoltabakkontrol, 3,150 tons of illegal tobacco products and nicotine-containing products were seized on the Russian market in 2025. From January to May 2026 — over 745 tons. Also during this period, 40 pieces of equipment were removed from six illegal production facilities.

The requirements for the trade in tobacco and electronic devices are developed by analogy with the existing licensing in the field of alcohol trade. To receive the documents, it will be necessary to formalize the lease, register with the state information system for labeling goods, and pay the state duty.

If the conditions are violated, the license will be revoked. For example, requirements in the field of health protection: prohibition of sales to minors, closed display and restrictions on the placement of outlets near educational institutions and transport facilities.

"The bill has been finalized for a long time on the site of the office of the Deputy Prime Minister. The opinion of business communities, public organizations, and regions was taken into account," Grigorenko's office added.

In 2025, Deputy Finance Minister Alexey Sazanov announced the price of licenses at a meeting of the State Council commission on Economics and Finance: 20 thousand rubles per year for one outlet, and 800 thousand rubles for wholesale turnover for a five—year period.

Currently, licensing is necessary for the import and production of tobacco and nicotine-containing products, Maxim Topilin, Chairman of the State Duma Committee on Economic Policy, recalled during the plenary session.

— It is quite a serious step, it is included in the government's plan to whitewash the economy. We proceed from the fact that this procedure will allow us to virtually eliminate issues related to illegal trafficking," the deputy said.

According to him, the measures are expected to help eliminate about 95% of illegal products.

How the tobacco market works

The Russian vaping market has become a very large segment of the nicotine industry in recent years, said Ekaterina Kosareva, Managing Partner of the VMT Consult agency. According to various estimates, its volume already exceeds 250 billion rubles a year. However, a significant part of the turnover is outside the legal circuit.

— The share of products outside the official turnover can reach 80%, which is associated with an increase in excise taxes and constant tightening of regulation, — she noted. — Therefore, there is a risk that in regions where restrictions or a complete ban will be imposed, some consumers will simply switch to the completely black market.

In this case, the state will face not only a loss of tax revenues, but also additional risks to the health of citizens, since the quality and composition of products from the shadow turnover are not actually controlled, Ekaterina Kosareva noted. That is why the effectiveness of the new mechanism will depend not only on the bans themselves, but also on the ability of the state to control illegal supply channels and sales of nicotine-containing products.

According to estimates by VMT Consult, there are several tens of thousands of points of sale of tobacco and nicotine-containing products in Russia. Even with a license cost of several tens of thousands of rubles, total revenues to the budgets of the country's constituent entities can amount to billions of rubles annually. However, the main economic effect for the state will not be related to the sale of licenses, but to the withdrawal of part of the market from the shadows, an increase in the collection of excise taxes and a decrease in the share of illegal turnover of nicotine-containing products.

— It is premature to talk about the mass closure of retail facilities. Much will depend on the total cost of the license and related requirements. If the amount of payment turns out to be moderate, the market will adapt without major shocks, Ekaterina Kosareva believes.

In any case, it will become more difficult for business. If neighboring regions choose different regulatory regimes, some of the demand may be redistributed between territories. Therefore, entrepreneurs' concerns about market fragmentation have certain grounds. However, this is exactly what a five—year pilot period is provided for - the government will be able to assess the real consequences of such an approach, rather than theoretical forecasts.

Licensing is needed to whitewash the sector and combat illegal products, in particular, vapes and liquids for them, Alexey Koitov, chairman of the Consumer Union of the Russian Federation, told Izvestia.

— In recent years, this has remained the only gap: the alcohol trade was subject to licensing, while the retail sale of tobacco, despite similar risks, was not. Now this gap is being eliminated," he said.

Any restrictive measures are aimed at reducing sales of products that are harmful to health, Pavel Shapkin, chairman of the National Consumer Rights Protection Union, told Izvestia.

According to experts, the first years of the new regime will show how effective regional bans and licensing will be.