Over the past year, tobacco trafficking in the south of Russia decreased from 20.3% to 15.8%, reaching a historic low. Against the background of a reduction in shadow turnover in the whole country and in the Southern Federal District, in particular, there was an increase in the volume of legal production and revenues from tobacco excise taxes to the federal budget. Receipts from the Southern regions alone amounted to 129.1 billion rubles. This is 29.6 billion rubles. or almost 30% more than a year earlier. At the same time, in the large regions of the Southern Federal District, the share of shadow tobacco turnover significantly exceeds the national average. To further whitewash the market, it is necessary to strengthen efforts to "harmonize the laws" of the member countries of the Eurasian Economic Area, continue to implement a risk-based approach based on the digitalization of the entire control and supervisory system, as well as strengthen the joint work of law enforcement and inspection agencies with the public. This was the conclusion reached by the participants of the online conference "The potential of regions in the fight against illegal turnover of excisable products", which was held by Kommersant-Rostov.
According to the ANO "National Scientific Competence Center in the field of combating illicit Trafficking in industrial products" (NSCC), based on the VII All-Russian tobacco market research (completed in the fourth quarter of 2024), the share of illegal tobacco products in Russia is 10.8%. "For the entire period of research since 2021, this is the minimum level," said Irina Bushina, Director of the National Research Center.
According to her, the lowest level of illegal cigarette trafficking in recent years has been recorded in the South – 15.8% against 20.3% a year earlier. The most unfavorable situation has developed in Adygea. The share of illegal trafficking there increased from 10.3% to 22.9% and is the highest among the regions of the South. The main negative factor is a sharp increase in the share of counterfeit goods: from 0.9% to 10.2%. This is the highest value in the Southern Federal District and the second in Russia.
In the Krasnodar Territory, the share of illicit trafficking increased by a third, from 9.4% to 12.8%, but remains the lowest among the regions of the South. In Kuban, the growth is due to an increase in the level of illegal cigarettes from the EAEU countries from 4.7% to 8.4%. The share of counterfeit goods increased slightly, from 2% to 2.2%.
In the Volgograd region, the share of illegal products decreased from 19.6% to 16.4%. The share of counterfeit goods in the region's shadow market has halved (from 3.7% to 1.8%) and Russian cigarettes with suspicious excise taxes (from 2.3% to 1.1%). More than 80% of the illegal traffic in the region is accounted for by illegally imported cigarettes.
The Rostov region recorded the lowest share of illegal trafficking over the past 3.5 years – 17.2%. However, this is 1.6 times more than the national average.
In general, the highest proportion of illegal trafficking is in rural settlements – 13%. At the same time, a reduction in the shadow market by a quarter (from 12.5% to 9.3%) is observed in cities with millions, Irina Bushina noted.
The decrease in the share of illegal trafficking in the Russian Federation is mainly due to a decrease in the share of illegal imports from the EAEU countries – 5.8% versus 6.4% previously. Despite the positive dynamics, this type of shadow turnover is still significant, occupying 53.4%. Traditionally, packs of Belarusian brands predominate in illegally imported cigarettes from the EAEU. The share of illegal cigarettes imported from non-EAEU member countries also decreased slightly: from 2% to 1.9%.
Against the background of a reduction in shadow turnover, there has been an increase in the volume of legal production and revenues from tobacco excise taxes to the federal budget. By the end of 2024, it increased by 101.9 billion rubles (from 724.8 billion to 826.7 billion rubles). According to ANO "NSTCC", over the past year, the amount of excise taxes from domestic producers received from the regions of the Southern Federal District amounted to 129.1 billion rubles. This is more than 29.6 billion rubles. or 29.8% more than in 2023 (then the revenue amounted to almost 99.5 billion rubles).
The triumph of the approach
This result was the result of the coordination of efforts of all government agencies involved in suppressing the illegal turnover of goods, said Artyom Kiryanov, Deputy Chairman of the State Duma Committee on Economic Policy. "The use of the latest digital achievements, in particular, digital labeling, has led to a decrease in the share of illegal trafficking in illegal products," the deputy noted. – Today we see the system in development: 27 product groups have already been digitally labeled. Pilot projects have been launched in 13 industries, and the capabilities of the system aimed at product safety and quality control are being expanded."
According to the parliamentarian, in 2024, more than 5.2 million requests from government authorities were sent to the digital labeling system. This is 67% more than in 2023. The average monthly increase in the number of requests is 31%.
After the labeling was introduced, 56 illegal tobacco factories were closed throughout Russia. In the second half of 2024 alone, law enforcement officers identified five clandestine nicotine-containing products. Over 670 thousand units of finished products worth more than 500 million rubles were seized.
Today, the labeling system is integrated with 22 agencies that are involved in control and supervisory activities. These Honest Sign systems allow the authorities to act promptly and precisely, putting efforts exactly where they are needed. Due to this, on the one hand, the administrative burden on the business is reduced, and on the other hand, the effectiveness of control and supervisory activities is increased.
The digital labeling system is the basis for the implementation of state control based on a risk-based approach. According to Nikita Ignashkin, head of the department for the digital labeling of goods and Product turnover Legalization at the Ministry of Industry and Trade of the Russian Federation, control agencies actively use the capabilities of the labeling system to approve risk indicators, as well as to justify and conduct control and supervisory activities.
For example, in 2023-2024, Rospotrebnadzor (which accounts for the most inspections) introduced 11 risk indicators for violations of mandatory requirements for tobacco and nicotine-containing products (including 1 indicator common to all product groups). As a result, unscheduled control measures were carried out for 8,840 points of sale in 2024, and violations of mandatory requirements were detected in 95% of cases.
According to Sergey Rodichev, deputy head of the interregional directorate of Rosalkogoltabakcontrol for the Southern Federal District, the business positively perceives their activities. "Those market participants who have decided to work in good faith understand why this is necessary," Mr. Rodichev emphasized.
He specified that 24 licensees carry out licensed activities in the territory of the district for the production and turnover of tobacco and nicotine-containing products and raw materials for their production. The largest number is in the Rostov Region (12) and the Krasnodar Territory (eight). In total, 307 organizations are engaged in wholesale sales of tobacco, nicotine-containing products and raw materials for their production in the South.
"When conducting unscheduled inspections, we use a risk-based approach," explained Sergey Rodichev. –In 2024, 177 preventive measures were carried out aimed at eliminating conditions, causes and factors that can lead to violations of the mandatory requirements of current legislation."
According to Mr. Rodichev, the department's specialists participate in joint activities to monitor the legality of production. In 2024, for example, two joint control events were held with law enforcement and customs officials. The turnover of products without accompanying documents (without recording information in the State Information System for labeling goods – GIS MT) in the amount of 1,339 packs was suppressed. In 2025, one joint event was held with law enforcement officers. As a result, 36.8 tons of tobacco raw materials were withdrawn from illegal circulation.
Fewer violations in retail
The participants of the Kommersant-Rostov online conference agreed that the permissive regime at the cash desks, plus the expansion of the control and supervisory functionality of the digital labeling system, gives quite natural results.
"As a representative of the Russian Taxpayers Union, I always pay attention to the fiscal effect," said Artyom Kiryanov. – We see billions of dollars in tobacco budget losses. But thanks to the Honest Mark labeling system, according to the strictest calculations verified together with the Tax Service, almost 800 billion rubles of taxes were received in 2023. The key fiscal effect was achieved through tobacco products – almost 400 billion rubles."
All this, according to the deputy, is a good example of expanding the functionality of the labeling system. The catalyst for the process was the implementation, starting from April 1, 2024, of the provisions stipulated by Decree of the Government of the Russian Federation No. 1944 regarding the establishment of a licensing regime for the retail sale of tobacco and nicotine-containing products. As a result, labeling has helped to reduce the number of violations in the sale of tobacco products. For example, sales of cigarettes with repeated labeling codes decreased by 77% (from 4.14 million units in March 2024 to 945 thousand units in January 2025). Also, during this period, sales in violation of established prices decreased by 52%. There were 79% fewer sales of unlabeled tobacco products and 57% fewer sales of products of unknown origin (not marketed by the manufacturer/importer).
According to the Director for the protection of the turnover of legal products of the Center for the Development of Advanced Technologies (CRPT) Maxim Kurgansky, in the first quarter in the Krasnodar Territory, the sale of more than 1.7 million tobacco packs was blocked at the checkout, in the Rostov region – 844 thousand, in the Volgograd region – 260 thousand, in Adygea – 20 thousand. "The main reasons were delay, incorrect code or attempts to sell several goods under one code," Mr. Kurgansky explained.
According to him, in 2025, there is a trend towards a decrease in the sale of tobacco products with signs of violations, and the greatest dynamics of blocking illegal products occurred in the second half of 2024. Thus, in the second half of the year, almost 4.7 million packages with signs of violations were blocked at the checkout in the Krasnodar Territory at points of sale. In the Rostov region – about 2.5 million, in the Volgograd region – just over 1 million packs, in Adygea – 137 thousand.
In the CRPT, the positive trend is attributed to the establishment of a permissive regime for the retail sale of tobacco at the cash registers in large retail chains a year ago, and from September 1, 2024, in non-chain retail. The product turnover monitoring system allows you to automatically block the sale of products at the cash desks according to a number of criteria, including if information about the product is missing from the GIS MT system, the product was previously withdrawn from circulation, its expiration date expired, etc.
How the "illegals" leave
In 2024, law enforcement agencies in Russia identified and closed 22 clandestine tobacco and nicotine-containing products. This is 40% more than in the previous year. This was stated by Alisa Andreeva, Corporate Affairs Manager for the region of Philip Morris International affiliated companies in Russia. "The regions of the Southern Federal District also made a significant contribution to this figure: four such production facilities were eliminated in the Krasnodar Territory and the Rostov Region,– said Alisa Andreeva. "This is clear evidence of an increase in the effectiveness of law enforcement practice, the result of consistent, comprehensive work to reduce the share of the illegal market."
According to her, now the main task in the field of combating illicit trafficking in tobacco and nicotine–containing products is to improve the systemic interaction between government, business and society, continue to intensify law enforcement and strengthen the joint fight against illegal players.
However, the struggle to whitewash the market is not over yet. So, according to Maxim Kurgansky, there are still underground manufacturers of tobacco products and electronic nicotine delivery systems in Russia. "This, for example, confirms the presence of fakes for Belarusian and Arab cigarettes," the expert explained. "Such products are manufactured in the territory of the Russian Federation and have nothing to do with either the Republic of Belarus or the UAE. Currently, law enforcement agencies are carrying out certain activities. Illegal production facilities will be identified and closed."
Legal businesses welcome this practice. However, there are objective difficulties in achieving the goal of whitewashing the market, related to the harmonization of the laws of the EAEU countries.
According to Roman Troshkin, Public Relations Manager at J.T. I. Russia, despite the optimistic figures for reducing illegal trafficking, the share of illegal trafficking averaged 11.55% in 2024. In terms of cigarette packs, that's 1.3 billion packs. Over the past year, the federal budget's losses from excise taxes and VAT, according to expert estimates, exceeded 127 billion rubles. "The main reason is the continuing disparity in excise tax rates in different EAEU member states. As a result, there are different prices for tobacco products for the end user," the expert noted.
In his opinion, it is necessary to systematically equalize excise tax rates among the EAEU member states and reduce the ranges of deviation of actual rates from the established indicative rate.
However, there remains the problem of illegal tobacco products flowing into the territory of the Russian Federation under the so-called interrupted transit scheme. This is when products are manufactured in one of the EAEU member states, they are declared according to documents for export outside the territory of the Customs Union, but when transported across Russia, these products are unloaded and illegally put into circulation.
"To prevent these schemes, all member countries signed an agreement on the use of navigation seals to track the movement of various types of products," said Roman Troshkin. –But unfortunately, this measure is not working yet, as not all members of the Union have adopted the necessary subordinate legal framework."
The expert also considers it necessary to adopt a law on the extrajudicial blocking of Internet resources selling tobacco and nicotine-containing products as soon as possible. This is one of the main sales channels for illegal products, which can take up to six months to be blocked in court. In March, a bill allowing the extrajudicial blocking of such Internet resources was passed in the first reading. "We really hope that by the end of the spring session, the bill will be adopted in the final reading," the expert summed up.
A new level of control
Denis Terskov, head of the interregional movement against counterfeit products, noted that the fight against the spread of illegal products has many aspects, and it is solved through lengthy and expensive transformations that bring results. However, the last line of defense against the spread of counterfeit goods is often public control – a "thin red line" in the way of illegal products reaching the end user.
"I work "on the ground" and I often have to interact with regulatory authorities and law enforcement agencies," the social activist emphasized. "The experience of interaction is not always positive, and not everywhere people are willing to work for results."
Denis Terskov said that his public organization interacts quite well with law enforcement agencies in the Krasnodar Territory, where they promptly respond to signals. Counterfeit goods are seized in large batches. But, for example, in the Volgograd region, everything is completely different: the reaction of law enforcement agencies is "not fast enough."
"In 2024, thanks to our cooperation on the prevention of counterfeiting, approximately 1.5 billion rubles worth of products were seized in the country," Terskov stressed.
According to him, it will be much easier to forge a legal pack now, since the labeling codes can be duplicated, and many small grocery stores do not punch the product at all. "They don't punch through the scanner, but simply write the amount at the checkout, and the person pays for the unknown product," the expert is sure. "This bypasses the entire system of risk indicators, especially in southern Russia and the North Caucasus. This is a police problem, but you can't put an employee at every store, and there aren't enough social activists for everyone. The structures are focused on those who are registered in the system and work honestly."
According to Ibragim Nagoev, a senior operative of the UEBiPK Department of the Ministry of Internal Affairs of the Republic of Adygea, in 2024 about 13 thousand tobacco products were withdrawn from illegal circulation in the region. Four criminal cases have been initiated under Article 171.1 of the Criminal Code of the Russian Federation (production, acquisition, storage, transportation or sale of goods and products without labeling). "I have not yet come across the fact that they (the defendants in criminal cases) refuse or come up with some versions when sending the case to court. In 100% of cases, according to this article, they are asked to consider their case in a special order and recognize everything. Consideration of such cases, as a rule, ends with fines. I have not yet seen any conditional or actual deadlines for the article. There were no repeat offenders either," the policeman said.
The suppression of illegal carts from other countries is the task of customs authorities, among others. According to the Southern Customs Administration (UTU), in 2024, 11 criminal cases were opened in the south of the Russian Federation on the facts of tobacco smuggling. According to Artur Novikov, senior operative for particularly important cases of the Department for Combating Economic Customs Offenses of the UTU, 71.2 thousand packs of cigarettes worth 9.3 million rubles were seized from illegal traffic in the framework of these criminal cases. For comparison, in 2023, the customs authorities of Utah initiated three criminal cases, seized 7.2 thousand. packs totaling 858.5 thousand rubles.
In the domestic market of the Russian Federation, after the release of goods, the customs control units of the UTU, interacting with operational units, as well as the territorial bodies of the Southern Transport Prosecutor's Office and the Ministry of Internal Affairs of Russia, conducted 112 verification measures in 2024 and two months of 2025 (customs inspections of premises and territories, customs inspections). As a result, more than 216,000 units of tobacco and nicotine-containing products without excise stamps were withdrawn from trade, with non-compliance with the current rules of mandatory labeling by means of identification. 62 cases of administrative offenses have been initiated, as well as six criminal cases.
As Denis Terskov noted, there are few people in Russia who will simply go and write a statement stating that they have identified a counterfeit. "The application procedure to Rospotrebnadzor is quite complicated, especially for an ordinary person. You need to specify the INN and a lot of other information that is stored in the "Consumer's Corner", and is often simply not available in stores. Due to the lack of the above data, we often receive refusals. Therefore, in the near future we will come up with an initiative to mitigate the requirements for filing an application so that an ordinary person can safely file a complaint and achieve the desired result," the social activist concluded.
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