AmCham Ukraine welcomes the positive progress made by law enforcement agencies in stopping the illegal manufacturing and distribution of excise goods – specifically, the uncovering of a large-scale illicit cigarette manufacturing in Chernivtsi Oblast. According to published information, the two confiscated production lines at the factory were capable of manufacturing 10,000 cigarettes per minute, or 720,000 packs per month. Law enforcement also seized 750,000 packs of cigarettes of various international brands, raw tobacco, and other industrial production materials. The factory’s monthly illegal revenue exceeded UAH 1 billion.
Every year, Ukraine loses billions of hryvnias of tax revenues due to the growing market for illegal tobacco products – in 2025 only, losses to the State Budget exceeded UAH 26 billion, according to research by Kantar Ukraine. Moreover, such activity negatively affects transparent and legitimate market participants by distorting competition and causing them financial losses.
These results of law enforcement agencies send a positive signal to the business community that the state is strengthening systemic efforts to protect the rights of foreign investors and the largest taxpayers in Ukraine and is working to ensure a level playing field for business by reducing the shadow economy. At the same time, it remains critically important to hold accountable all participants, particularly the organizers, of illegal production and to prevent its resumption in the future.
AmCham Ukraine expresses its gratitude to the Economic Security Bureau of Ukraine and the Prosecutor General's Office for their consistent work in combating the illegal production and circulation of excise goods. The business community looks forward to the continuation of effective enforcement and further large-scale detections, which will directly contribute to reducing illegal tobacco trade and generating additional revenues for the State Budget of Ukraine.
