On 10 January 2008 the RF government approved joining of Russia International Tobacco-Fighting Convention. The Convention presupposes a number of restrictions: total advertisement ban, increase of excises for the purpose of reducing cigarette consumption, introducing stricter marking demands and actual ban on smoking in all public places.

Sergey Sapotnitsky, the Chief Executive of JSC «Donskoy Tabak», spoke on how this situation will affect tobacco industry and activity of the company «Donskoy Tabak»:

— It’s difficult to tell so far how joining of Russia International Tobacco-Fighting Convention will affect tobacco industry as a whole, since legislation, that will contain concrete restrictions, will be adopted  during five years. But I can tell that there will be no turning point, as this step of the government is foreseen. It was expected already in the beginning of 2007. Joining Framework Convention takes place within the framework of the State’s strategy concerning tobacco industry regulation, which is already in rather stringent term.

As for increase of excises, nowhere in the world the rise in their price doesn’t bring to the drop in cigarettes consumption. In Europe a pack of cigarettes costs 4 euros and more. In France, for example, the population reacts to the introduced toughening in extremely negative way. It is impossible to forbid something to a grown-up person, a conscious refusal is necessary. And prohibitions often result in opposite outcome. In the case in question appearance of infringing production is possible. Now we say, that there is actually no infringing share, but the situation will change, if the official producers stop manufacturing production of a low price segment. If now the cheapest pack costs 7-8 rubles, than it will cost 10 rubles.

A person, who smokes out a pack of cigarettes per day, will spend 150 rubles more. It will not make him stop smoking. And if drastic changes in legislation take place and it won’t be profitable for producers to manufacture production of a low price segment, infringing products will certainly appear. Thus, the State only loses: the market comes out of control, less amount of taxes comes in treasury. And the health of the nation doesn’t become better either, as grey production is worse in its quality than that one that is produced officially. Official producers must maintain demands, they are strictly controlled.

Concerning introduction of stricter marking demands, I can say, that both on the packs of products of the company «Donskoy Tabak» and on the packs of business rivals there are no inscriptions «light», «super light», because, as I have already said above, the industry was ready to such changes. If these are the rules of the game, we accept them. As for the communication with the consumer after introduction of advertisement ban for tobacco production, all the possible of the left channels will be used.

The company «Donskoy Tabak» supports joining the Framework Convention. There is no any crisis in tobacco industry and it is not expected. There is a planned movement  to strengthening the demands to tobacco production and rules of carrying out a game in the market. Time will show what actually will take place in the market. As for us, we’ll adjust to the conditions that will be formed. On the whole, steps of the government are reasonable. Though our opinion is, that now all the harm existing in the world is ascribed to tobacco industry. Most likely it is not so. But it is considered, if to undertake such steps the health of the nation will improve. We agree.