{"id":102395,"date":"2024-08-28T12:03:53","date_gmt":"2024-08-28T09:03:53","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/102395\/"},"modified":"2024-08-28T12:03:54","modified_gmt":"2024-08-28T09:03:54","slug":"cigarette-smuggling-hardly-possible-without-government-knowledge","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/102395\/","title":{"rendered":"Cigarette smuggling hardly possible without government knowledge"},"content":{"rendered":"\n

Belarus\u2019 tobacco industry generated 2.5 billion rubels ($862 million) in tax revenue last year despite tight sanctions and border controls.<\/strong><\/p>\n\n\n\n

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\n \n <\/figcaption>\n<\/figure>\n\n\n\n

Money more important than health<\/strong><\/h2>\n\n\n\n

Tobacco products are consumed by 41.9% of men and 11.9% of women in Belarus, according to statisticians.<\/p>\n\n\n\n

The tobacco industry contributes significant revenue and is under strict state control. Official data on revenue is kept secret.<\/p>\n\n\n\n

Tobacco profits can finance army<\/strong><\/h2>\n\n\n\n

In early August, Alaksandar \u0141uka\u0161enka presided over a government conference on the tobacco industry, which accounted for 6.3% of national budget revenue last year.<\/p>\n\n\n\n

The revenue was higher than proceeds from income tax (1.4 billion rubels) or Eurasian Economic Union import customs duties (2.1 billion rubels). It was close to the cost of servicing the foreign debt (2.6 billion rubels) or maintaining the army (2.7 billion rubels).<\/p>\n\n\n\n

Regular government meetings on tobacco underscore the industry’s importance.<\/p>\n\n\n\n

Sanctions<\/strong><\/h2>\n\n\n\n

At the August meeting, \u0141uka\u0161enka expressed concern about worrying trends without going into detail. The problems must be related to export restrictions.<\/p>\n\n\n\n

Belarus’ tobacco industry has been hit by sanctions. In 2021, British American Tobacco and other major companies stopped dealing with Belarus, citing a ban on imports of cigarette-making materials.<\/p>\n\n\n\n

In 2022, the Hrodna-based tobacco factory Nieman<\/em> and private producer Inter Tobacco<\/em> were targeted by international sanctions.<\/p>\n\n\n\n

In 2024, the government registered one more cigarette manufacturer, possibly as an attempt to bypass the sanctions and solve some logistical problems.<\/p>\n\n\n\n

Smuggling<\/strong><\/h2>\n\n\n\n

Before the sanctions went into effect, Belarusian companies made a lot of money from cigarette exports to Europe. The price difference was huge: in June 2024, the average price of imported cigarettes was twice as high as that of Belarusian-made cigarettes — $1.19 and $1.92, respectively.<\/p>\n\n\n\n

Average retail prices of cigarettes<\/strong><\/p>\n\n\n\n

Belarusian-made cigarettes with a filter, per pack of 20<\/p>\n\n\n\n

Imported cigarettes with a filter, per pack of 20<\/p>\n\n\n\n

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