Business news from Ukraine

UKRAINIAN PARLIAMENT WANTS TO BAN ADVERTISING OF E-CIGARETTES

The Verkhovna Rada supported at first reading the amendments to Article 22 of the Law on advertising regarding the expansion of the law to electronic cigarettes and liquids used in them.
Some 284 MPs backed bill No. 4212, with the minimum required votes of 226.
The document provides for a ban on advertising of tobacco products, electronic cigarettes, liquids used in electronic cigarettes, advertising marks for goods and services, other objects of intellectual property rights, under which tobacco products, electronic cigarettes and liquids used in electronic cigarettes are produced.
The bill prohibits the placement on any other goods of images of tobacco products, electronic cigarettes, liquids used in electronic cigarettes, marks for goods and services under which tobacco products are produced (such as lighters and ashtrays).
It is also prohibited to sponsor television, radio, theater and concert, sports and other events using marks for goods and services, other objects of intellectual property rights, under which tobacco products, electronic cigarettes, liquids used in electronic cigarettes are produced.
According to the document, advertisements for electronic cigarettes and e-liquids should not contain images of popular people or approval of smoking or use of electronic cigarettes. Also, advertising should not give the impression that most people smoke or use electronic cigarettes.
According to an explanatory note to the bill, the ban on advertising of electronic cigarettes and the liquids used in them is aimed at preserving the health of the nation. The document is aimed at reducing the use of electronic cigarettes and the liquids used in them.

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LARGE U.S. PRODUCER OF E-CIGARETTES ENTERES UKRAINIAN MARKET

The large U.S. producer of e-cigarettes – JUUL Labs – is entering the Ukrainian market, which will be the 14th international market for the company.
“We will be represented in Ukraine by the original American product. The Cigar House Fortuna will become our distribution partner. We will be represented in the six largest cities of the country – Kyiv, Odesa, Lviv, Kharkiv, Dnipro and Zaporizhia. We plan to enter 1,000 retail outlets. Products in stores will appear in the middle of next week,” General Manager of JUUL Labs for Ukraine and the CIS Ivan Darkov said at a press conference in Kyiv on Tuesday.
According to him, the company intends to oblige each outlet to sign a contract with the distribution partner that it will identify every customer who buys the product.
“If an outlet does not comply with the demand, the company will stop supplying its products. We do not plan to go on Facebook, Instagram, as these channels are aimed at popularizing the product mainly among young people, and also sell products through other online sales channels,” Darkov said.
He said that now the company has no official representation in Ukraine, as well as plans to open its own production.
“In Ukraine, there are more than 8 million adult smokers of traditional cigarettes. Based on the price, our product belongs to the premium segment. We plan to have over 200,000 customers for our products in Ukraine in three years,” the company’s general manager in Ukraine and the CIS said.
In addition, according to him, JUUL Labs intends to participate in the development of bills to regulate the market of e-cigarettes in Ukraine.

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