VARES Manifesto

The Ukrainian Association of the Electronic Cigarette Market brings together responsible market participants who operate transparently, comply with the law, and pay taxes.

We are convinced that a strong state begins with clear rules. Effective regulation must be evidence-based, ensure fair competition, protect consumers, counter illegal circulation, and create conditions for stable state budget revenues.

We believe that protecting public health, protecting minors, de-shadowing the market, and supporting economic development do not contradict one another. These are interconnected goals that can only be achieved through modern, fair, and effective regulation.

De-Shadowing the Electronic Cigarette Market

A shadow market emerges where the state loses competition to its own rules.

Demand for products does not disappear because of flawed regulation. It moves into the shadows. Where the legal market becomes uncompetitive, illegal trade, counterfeit products, tax evasion, and uncontrolled access by minors all increase.

VARES advocates for the systemic de-shadowing of the market for electronic cigarettes, e-liquids, and other related excisable goods. This means eliminating legislative gaps, ensuring effective control over production, import, storage, and sale of products, and countering illegal distribution channels.

State control should focus first and foremost on those operating outside the law: without licenses, without paying taxes, with counterfeit products, or through illegal sales. They cause the greatest harm to the state, businesses, and consumers.

Transparent and Effective Legal Regulation

Legal uncertainty always works in favor of the shadow market.

Effective regulation begins with clear and understandable rules. Legislation must clearly distinguish between electronic cigarettes, e-liquids, nicotine components, tobacco products, and other related product categories. Different products cannot be regulated identically merely because they contain nicotine.

VARES supports improving legislation that will ensure full control over the circulation of nicotine-containing products. In particular, it proposes legally regulating the circulation of nicotine boosters by setting requirements for their composition, volume, and labeling, as well as restricting the storage of pure nicotine at retail locations.

Clear rules allow the state to control the market effectively and allow legal businesses to operate openly and predictably.

Fair Tax Burden

Tax policy should fill the budget, not expand the shadow market.

The tax burden must be economically justified, predictable, and proportionate to the real state of the market. Taxes should encourage the development of legal business, not create competitive advantages for illegal trade.

Every tax policy decision should be assessed by its practical outcome: whether it increases budget revenues, reduces the share of the shadow market, and ensures effective state control.

VARES supports a tax model that simultaneously ensures stable budget revenues, the development of the legal market, and equal competitive conditions.

Protection of Minors

Children must not have access to nicotine-containing products.

The ban on sales to minors is an unconditional rule. At the same time, effective protection of children is impossible without responsibility across the entire chain of access to excisable products.

VARES supports introducing administrative liability for adults who buy or transfer alcoholic beverages, tobacco products, electronic cigarettes, e-liquids, and other excisable products to minors. This will make it possible to hold accountable not only sellers, but also adults who knowingly help minors bypass established age restrictions.

Protecting children is not only the seller's responsibility. It is the shared responsibility of the state, society, and every adult.

Evidence-Based and Differentiated Regulation

Effective regulation takes into account the characteristics of a product, not only its category.

Electronic cigarettes, e-liquids, nicotine components, and traditional tobacco products differ in their characteristics, methods of use, and mechanisms of state control. That is why they require different regulatory approaches.

VARES supports legislation that clearly distinguishes between different categories of nicotine-containing products. This creates the conditions for fair taxation, effective control, proper consumer protection, and countering illegal circulation.

We do not advocate weaker regulation, but more precise regulation: regulation that reflects the specifics of each product category and ensures the achievement of public policy goals.

European Integration and International Experience

Strong decisions are born from analyzing experience, not from copying someone else's rules.

VARES supports harmonizing Ukrainian legislation with European approaches to regulating the electronic cigarette market. At the same time, European integration should be based on analyzing the effectiveness of different models, not on mechanically transferring individual rules.

We are developing cooperation with international and European industry associations to implement best practices in state regulation, control, responsible trade, and countering the illegal market.

The goal of this approach is to build a modern regulatory system in Ukraine that protects consumers, supports legal business, ensures effective state control, and aligns with European principles.

We are convinced that the future of the Ukrainian market will be determined not by the number of prohibitions, but by the quality of the rules.

VARES unites everyone who shares the principles of legality, responsibility, and fair competition. We are open to cooperation with the state, the expert community, civil society, and every market participant ready to work honestly.

A strong market. Strong rules. A strong Ukraine.