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Ukraine is selling fewer illegal cigarettes, but budget losses from the shadow market exceed UAH 20 billion - study

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The volume of the shadow cigarette market in Ukraine is currently UAH 6.65 billion. According to Kantar Ukraine, this is evidenced by the data of the project "Monitoring of the illegal trade in tobacco products in Ukraine," UNN reports.

It is noted that in July 2024, the overall level of illegal trade in tobacco products in Ukraine decreased to 14.6% compared to 19.1% at the beginning of this year and 18% in April.

Kantar Ukraine adds that as of the third wave of the 2024 study, the losses of the state budget of Ukraine are estimated at UAH 23 billion, and the volume of the shadow cigarette market in Ukraine is 6.65 billion units.

The leaders in terms of distribution of illegal products are 6 regions of Ukraine, where 69% of such products are sold: Dnipropetrovs'k - 22%, Odesa - 11%, Kharkiv - 11%, Kyiv and Kyiv region - 9%, Khmelnytsky - 8%, Lviv - 8%.

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Director of the Kyiv Scientific Research Institute of Forensic Expertise Oleksandr Ruvin in an exclusive interview with UNN said that without practical use, new tools to combat the illegal tobacco market will not be effective.

"At one time, we had an idea to create a thematic register of manufacturers. The State Tax Service provided us with a list of companies licensed to sell tobacco products - more than 50 representatives. The companies were supposed to provide us with reference product samples. We received some of the information, but this work is not being used as effectively as it could be. In addition, the experts have all the technical capabilities to conduct direct monitoring visits to production facilities. The steps are simple: the arrival of experts, production of several packs in their presence, prompt analysis of all characteristics on site (tobacco, packaging, filter elements, other components and their signs), and a conclusion here and now. Resolutions on the appointment of expert examinations to investigate the facts of illegal tobacco production are now being issued in the amount of dozens a day, and the state must have clarity on this issue," Ruvin said.

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