From: RIA Novosti
MOSCOW, June 1 (RIA Novosti), Nikita Alentyev – Russia’s ban on smoking in an extended number of public areas, including bars and restaurants takes effect June 1, but is hardly the core reason why the consumption of tobacco is dropping, Alexander Lioutyi of British American Tobacco (BAT) Russia told RIA Novosti Sunday.
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According to Lioutiy, the tobacco supply and demand are sensitive to pricing regulation not only in Russia, but in the adjacent markets as well, with “high prices of cigarettes triggering the inflow of contraband and counterfeit products into the market.”
“A 40% increase in the minimum excise rate in 2013 resulted in a 3-fold increase in the illegal tobacco market,” he said.
