From January 1, in Russia, the minimum price of tobacco products will reach 112 rubles. Such an amount was previously calculated by the Ministry of Agriculture based on the minimum value of the excise rate per pack of cigarettes, the value-added tax rate (VAT) and the raising coefficient.
In 2021, the minimum price was 108 rubles per bundle of 20 pieces. In the first half of the year, the average price for the pack was 135.8 rubles.
However, the preferences of Russian smokers in January-August 2021 have changed in favor of cheap cigarettes worth up to 125 rubles. This price segment became the leader. The share of cheap cigarettes increased from 32.6 to 37.7 percent, heating the average segment (from 125 to 145 rubles per pack). The latter’s share decreased by 3.5 percentage points (up to 31.3 percent). In general, sales of all cigarettes for this period fell by 4.8 percent.
The Independent International Agency Kantar TNS Russia has previously appreciated the share of illegal sales of cigarettes in Russia in 2021 in 10.7 percent. Since 2016, the country’s budget has long been offered 295.6 billion rubles due to illegal tobacco products.