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Tobacco Rises in Price to Revolution

Tobacco Rises in Price to Revolution
04.12.2006

Tobacco companies have raised the prices for some marks of cigarettes up to 15-17 percent. The reason of it became transition to a new system of charging of tobacco excises. On the average increase of prices of marks BAT made up 7% while Philip Morris – 10%.

Prices for production of British American Tobacco have grown as follows: Kent has risen in price for 2,5%, Vogue - for 3%, Alliance - for 8%, "Java Gold" - for 10%, "Java" - for 15-17%. The prices for production of Philip Morris have grown even more. So, Parliament has risen in price for 12%, Marlboro - for 7%, LM - for 15%, "Soyuz Apollon" - for 12-15%, Virginia Slims - for 7%. The third company on size in tobacco market - Japan Tobacco International – hasn’t risen the prices yet, though the distributors are waiting for price-lists of JTI on the next week.


From editorial staff: Certainly, expected increase of prices is not comparable on its scale with tobacco crisis of August, 1990 when "unexpectedly" both Moscow tobacco factories ("Java" and "Ducat") were found closed for scheduled maintenance - usually they closed only one after having created a warehouse stock mainly from the Bulgarian cigarettes. However in August, 1990 it appeared that traditional stock for some reason was let out in a trading network already in spring and some train formations with cigarettes going to Moscow from the Balkans appeared to be stopped.

So, it was clear that crisis with tobacco products in the capital was organized by someone. Cigarettes rose sharply in price - 3 and more times, that was too expensive for the ordinary consumer. Crowds of smokers appeared on the streets, long lines ranked, people began to overturn tobacco boothes, set on them fire.

All that reminded significant rehearsal to the events which followed exactly in a year in 1991. Compulsory refusal of a habitual drug tobacco represents is quite capable to destabilize situation in the country even more strongly than monetarization of privileges or reform of municipal housing economy.

Anatoly Baranov, chief editor of FORUM.msk

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