The Ministry of Economic Development is against setting a single minimum price for cigarettes. The department considers that such a measure would have a negative effect on the lower price segment of the tobacco market.
According to a letter from Oleg Fomichev the deputy head of the Ministry of Economic Development, to the Ministry of Finance on August 2, the current mechanism for establishing a minimum retail price for tobacco products is simple and transparent, and it does not seem appropriate to change it. Currently the minimum price is 75% of the maximum price, which is fixed by the manufacturer for each brand of cigarettes. Oleg Fomichev considers that fixing a minimum price for all tobacco products could lead to an imbalance in tobacco prices between the various Member Countries of the Eurasian Economic Union (EAEU). The Ministry considers that this, in turn, would increase the share of illegal products on the Russian tobacco market.