MOSCOW, Feb 25 (Reuters) - Russia will ban smoking in manypublic places from June under a law central to PresidentVladimir Putin's plans to make citizens healthier, raise lifeexpectancy and help the economy.

Under the law, signed by Putin on Saturday and passed byparliament last week, smoking will gradually be banned at work,in the subway, restaurants, cafes, ships and long-distancetrains in a nation with one of the world's top smoking rates.

The legislation will also restrict cigarette sales and banadvertising and sponsorship of events by tobacco companies.

It was opposed by foreign firms such as British AmericanTobacco, Imperial Tobacco, Japan Tobacco, and Philip Morris, which control more than 90percent of a Russian cigarette market worth about $20 billionannually.

Putin's aim is to force a lifestyle change on millions ofRussians in a country where bars and restaurants are oftenfilled with a thick blue haze of smoke.

But in a sign that many will resist, smokers rights' groupsoppose the law and a website has sprung up which, in a nod toRussia's Communist past, declares: "Smokers of the world unite."

"I'm categorically against this stupid ban. Smoking isheavily restricted now anyway. No smoking in offices, no smokingin staircases, nowhere," said Grigory, a 60-year-old businessmenin Moscow who declined to give his second name. "I'll go outeven less now as there's nowhere to go for us chain-smokers."

The law will be phased in, with smoking banned in somepublic places, such as subways and schools from June 1. The banwill be broadened to include restaurants and cafes a year later.

Sales of tobacco products will be forbidden at street kiosksfrom June 1, 2014, advertising and displaying cigarettes will berestricted, and minimum prices will be set for cigarettes whichmostly cost 50 to 60 roubles for a pack of 20 (less than $2).

The law is part of Putin's drive to reverse a populationdecline that began after the Soviet Union collapsed in 1991. Hehopes it will increase productivity and promote economic growth.

HEALTH DRIVE

Putin has stepped up these efforts since his return to thepresidency in May, mounting a campaign reminiscent of Sovietleader Mikhail Gorbachev's attempt to crack down on drinkingunder his failed "perestroika" reforms of the late 1980s.

Prime Minister Dmitry Medvedev said last year almost 400,000Russians die each year from smoking-related causes. The WorldBank says 40 percent of Russians smoke regularly.

World Bank figures show Russia's population slumped to 141.9million in 2011 from 148.6 million in 1991, with average lifeexpectancy at 69 years, against 78 in the United States. Failureto expand the workforce would limit economic growth.

Announcing Putin had signed the law, the Kremlin said onMonday it would bring Russia into line with a World HealthOrganization tobacco control treaty which it ratified in 2008.

Owners of the ubiquitous kiosks, which many convenienceshoppers rely on, say many could go out of business, especiallyas they have already been hit by restriction on alcohol sales.

The All-Russian Smokers' Rights Movement said the law wouldnot work and called instead for moves to discourage youngstersfrom starting smoking.

Erik Bloomquist, an analyst at Berenberg Bank, said: "Inaggregate ... we do not expect the restrictions to make muchdifference in overall consumption or prevalence, and think thesmoking bans will be honoured more in the breach than in actuality."

He said increases planned in excise taxes were likely tohave a bigger impact on consumption.

The move is a blow to Japan Tobacco, in which the Japanesegovernment pans to sell about a third of its stake.

Like other tobacco companies, it said it would abide by thelaw but several firms said the law could increase illicit trade.