05.May .2022 14:00

Tobacco Price To Increase By 20% Within 2 Months – Zviad Skhvitaridze

Tobacco Price To Increase By 20% Within 2 Months – Zviad Skhvitaridze
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Economic and legal expert Zviad Skhvitaridze considers that tobacco price increase will be an inevitable process in two months. Supposedly, the price will grow by 20%.

As he told BMG, it will be difficult for the tobacco importing companies to maintain the existing prices in Georgia after the opening of new markets due to the situation in Ukraine.

"Companies do not raise prices yet, but in the short or medium term, the price of tobacco will definitely increase, because companies have to switch from the Ukrainian market to new markets (importers consider Europe as an alternative market) and will not be able to maintain the current price. Now some companies are importing so-called European Duty-Free brands that are usually more expensive than the product. Companies will keep prices for two months, they may be able to keep it for a shorter period, for example, in a month and a half," Skhvitaridze explained.

Georgia received 80% of its tobacco from Ukraine and international companies produce a significant part of their products for Georgia in Ukraine.