Russia is going to prohibit Tobacco Ads

Published on October 6, 2008 4:19 AM

A new legislation drafted by the Russian cabinet could have serious consequences for Russia’s tobacco market. The new law, if approved, would permit Russia to ratify the World Health Organization Framework Convention on Tobacco Control.

In other countries, complete bans on tobacco ads, along with further prohibitions on smoking, have been shown to seriously reduce sales of tobacco by 9, 4 and 7 percent. According to survey, more than 300 billion cigarettes are sold annually in Russia with a value of around $10 billion. Current data from one of Russia’s leading tobacco companies, British American Tobacco, also suggests that Russians’ taste for tobacco products is developing rather than declining. The major market trend at present is a growth in the premium and medium segments as consumers trade up from lower priced cigarettes to higher priced brands.

Partial bans on ads have been shown to be ineffective at reducing sales of cigs as the tobacco industry can substitute advertising in other media. The World Bank concluded: “comprehensive bans on cigarette advertising and promotion can reduce smoking, but more limited partial bans have little or no effect.” Tobacco manufacturers in Russia are advertising through media still available to them such as indoor and print advertisements as well as carrying out promotional activities like handing out free cigarettes in bars. Maxim Osipov, project manager for the digital signage networks of one of Russia’s leading media sellers, Video International Group, said: “All developed countries are tightening advertising legislation in regard to tobacco products, so in general this process is normal and appropriate.”

Alexander Lioutyi, corporate affairs director for British American Tobacco, said: “British Amercian Tobacco Russia supports the ratification of the framework convention of the WHO on tobacco control in Russia, as we believe that the result of adopting this convention will be reasonable steps, directed toward the development of balanced governmental control of the Russian tobacco industry, taking into account the interests of all parties involved.”