The smoke of the Ukrainian war has put cigarette manufacturers in a difficult position in Azerbaijan

Recently, it has become difficult to find some cigarette brands in stores in the country. Tabaterra CJSC, one of the largest cigarette manufacturers in Azerbaijan, confirmed to the media the difficulties associated with the production of cigarettes. That company total 10With more than 0 varieties, it produces local brands, including international brands owned by the world’s largest manufacturers, such as British American Tobacco, Japan Tobacco International and Imperial Tobacco Group. The statement said that, Until March of this year, the raw materials required for the production of licensed international products were supplied from the factories of these companies in Ukraine. Due to the war in Ukraine, these raw materials are imported from other countries in the region, mainly from Turkey: “We would like to say that, (brands not found in stores) “Sobranie” and Winston trademarks are owned by Japan Tobacco International. As you know, due to the ongoing war in the region, the world is experiencing difficulties in the field of logistics and For this reason, the process of changing the country of supply of raw materials for some of the above-mentioned brands took longer.

The company also said so that, An alternative to Ukrainian suppliers has already been found in Turkey and In the near future, raw materials will be imported from new suppliers.

Azerbaijan’s smoking dependence on Ukraine

To the investigation of the State Statistics Committee according to, 31.6 percent of men over the age of 15 in Azerbaijan, or about one in three men, smoke. The highest rate is in men aged 45-64. Half of men in this age group are smokers. 2026 percent of men between the ages of 44 and 33 percent of men over the age of 65 smoke. This means that the problems in the country’s cigarette market do not go unnoticed by millions of citizens.

Official figures according tolast year in Azerbaijan 14 billion 351 million cigarettes were produced. 316 million of these cigarettes were exported. The main direction in the export of tobacco products is Belarus and It is Russia. As for imports, according to the State Statistics Committee, last year the country received 91 million dollars worth of tobacco and tobacco products were brought. Its share in total imports was 0.78 percent. In 2021, 70% of finished tobacco products will be imported to Azerbaijan from Ukraine. Last year, Azerbaijan received 12.1 million dollars from Ukraine dollars imported 483 million cigarettes worth

It seems at first glance that, The amount of imported cigarettes is not so much compared to the volume of domestic production. But it must be taken into account that, Imported products are also used as raw materials in the production of what we call domestic production.

Azerbaijan also buys processed tobacco from Ukraine. Last year, Ukraine accounted for 98 percent of total imports of this product in terms of value, and 97 percent in terms of numbers. 4,467 tons of tobacco were purchased there. At that time, it was natural for the production of fermented tobacco (tobacco products) and technological production is considered to be tobacco leaves) local production was 4,237 tons. So, although at first glance it seems that the main share in the production of cigarettes in Azerbaijan is provided by domestic production, in fact, domestic production in terms of raw materials Ukraine depends heavily on the market. It should also be noted that, Tobacco production is not so widespread in Ukraine and that country mostly processes this product from the countries that grow it and then sells it to third countries. Ukraine about half of tobacco exports billion dollars wins.

Production is becoming more difficult, taxes are rising

The increase in taxes in the cigarette market is also noteworthy. The decision of the Cabinet of Ministers according totobacco from April 13 this year and The excise rate on tobacco substitutes is from AZN 43 to AZN 46.5 per thousand, as well as on consumed tobacco. and The excise rate on tobacco products was raised from 12.9 to 14 manat per thousand units. According to the latest information of the State Statistics Committee according toIn April this year, the average market price of cigarettes in Azerbaijan rose by 8.3 percent compared to the same period last year. (Radio Liberty)