Russia Faces E-Cigarette Shortage as “Black Market” Products Disappear and Legal Supply Lags Behind

Moscow — Since mid-August, Russian consumers have reported a sharp drop in the availability of e-cigarettes and vape liquids across retail and chain outlets. By early October, major vape juice brands had virtually vanished from leading tobacco retailers, leaving mostly low-cost or questionable-quality alternatives. A few familiar brands remain, but retail prices have surged by roughly 150% since early summer.

Two Main Causes Behind the Shortage

According to several vape store owners, the disruption stems from two key factors:

  1. Rising excise taxes. Over the past two years, Russia’s excise duty on vape liquids has increased from 20 rubles (≈$0.25) to 44 rubles (≈$0.55) per milliliter, pushing many small businesses to operate in the “gray zone” to avoid unsustainable compliance costs.
  2. Tighter enforcement of the Chestny Znak system. Since August, failure to use the official “Honest Label” (Chestny Znak) traceability code can result in criminal charges. Transactions involving as little as 100,000 rubles (≈$1,250) are now considered “large-scale circulation,” carrying penalties of up to three years in prison.

A vape chain founder, identified only as Alexey, described the market reality:

“Around 90% of all e-cigarettes in Russia are ‘black goods’. They’re made in China and enter the country through parallel imports, bypassing excise duties. Even when labeled, many codes are duplicates or incorrect, without proper traceability through the supply chain. Store owners fear imprisonment and heavy fines, so they’ve pulled stock from shelves.”

While there have been reports of transport delays at the Kazakhstan border, most distributors agree logistics are not the primary issue.

Legal Products Struggle to Compete

According to Alexey, founder of the Pitersmoke franchise, the legal—or “white”—market remains too small to meet demand. The higher tax burden has also pushed compliant retail prices sharply upward, deterring consumers.

“A Waka disposable vape (10,000 puffs) sells for 2,690 rubles (≈$33) in our compliant stores, but just 1,490 rubles (≈$18) in unlicensed shops. That’s a 1,200-ruble ($15) difference—an impossible gap for legal retailers to compete with.”

However, not all players believe the situation amounts to a full-blown shortage. Good Vape spokesperson Ekaterina Markvart said:

“It’s not a ‘severe shortage.’ The brands leaving the market are being replaced by those willing to comply with new regulations. We’ve managed to secure enough legitimate stock to meet customer demand.”

Meanwhile, the Russian government has submitted a bill to the State Duma that would allow regional authorities to ban e-cigarette sales entirely. Nizhny Novgorod, Tyumen, and Vologda regions are reportedly among the first considering such measures.

AIR and Snoop Dogg Launch New Hookah Flavor Line

November 4 — Global hookah company AIR Limited has announced a collaboration with entrepreneur and cultural icon Snoop Dogg to release a premium Al Fakher flavor line. The collection includes Cloud 92, Dogg’s Delight, Midnight Blues, Tha G’z Mix, and Money Honey, available worldwide through hookah.com.

“This partnership combines Al Fakher’s craftsmanship in shisha production with Snoop Dogg’s cultural influence,” the company said. CEO Stuart Brazier added that AIR has invested $115 million since 2019 and holds over 100 active or pending patents, reaffirming its commitment to innovation and scientifically validated safety research.

Bhutan to Introduce 115% Tax on E-Cigarettes Starting 2026

November 4 — Bhutan’s Ministry of Health has announced sweeping fiscal measures targeting e-cigarettes, introducing a 115% composite tax effective January 2026. The levy includes a 100% excise duty, a 10% customs tariff, and a 5% goods and services tax (GST). Vape devices will face an additional 20% excise tax on top of existing import and sales taxes.

Officials said the move aims to curb the rising use of e-cigarettes among young people and bring all nicotine-related products under national regulation. Bhutan’s Tobacco Control Act and related regulations are being updated to explicitly include e-cigarettes, vaporizers, and heated tobacco products.

The government reaffirmed its ongoing ban on advertising, promotion, and sponsorship of all tobacco and nicotine products.

Argentina’s Santa Fe Province Moves to Expand Tobacco Control to E-Cigarettes and Heated Products

Santa Fe — The lower house of Argentina’s Santa Fe provincial legislature has passed a bill on first reading to amend the 2005 Provincial Tobacco Control Law (Law No. 12,432). The proposed update adds e-cigarettes, vaping devices, and heated tobacco products to the scope of regulation, citing their growing popularity among young people.

“We’ve seen an alarming trend of e-cigarette use among teenagers. These devices are brightly colored, fruit-scented, and cartoon-themed—highly appealing but far from harmless,” said legislator Sonia Martorano, author of the bill.

The amendment explicitly includes the phrase “and vaping” (y vapear) in the legal text and covers all aerosol-generating devices, regardless of nicotine content. Heated tobacco sticks are also formally brought under regulation.

Martorano warned that the high temperatures and humidity of these devices can cause respiratory irritation and long-term lung damage, with users inhaling toxic metals such as lead, nickel, and cadmium.

“Legislation alone isn’t enough,” she added. “Public education is crucial. Society still underestimates the risks of vaping—we need awareness campaigns starting in schools and families to make it clear: vaping is harmful.”

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