According to the new Kantar Ukraine research “Monitoring of Illicit Trade in Tobacco Products in Ukraine”, the level of the illicit tobacco market in Ukraine increased in February 2025, after a year of decline, reaching 14.1%. It is estimated that this will lead to annual losses to the state budget of UAH 24.2 billion, and the volume of the shadow cigarette market exceeding 5 billion units.
AmCham Ukraine consistently advocates for the need to combat shadow markets systematically, particularly in the circulation of excisable goods. AmCham Ukraine member companies have repeatedly provided their expertise and supported initiatives aimed at reducing the volume of illicit production and trade in tobacco products.
The increasing share of tobacco products marked as Duty-Free or for export being illegally sold on the domestic market is of particular concern. In February 2025, it was already 6.4%. In addition, there are more cases of counterfeit products with signs of fake excise stamps.
We are grateful for the leadership and efforts made by the Members of Parliament, law enforcement, and fiscal authorities, which contributed to the reduction of the illicit tobacco market. However, the latest data clearly indicates the need to significantly intensify efforts to fight the shadow economy.
We urge Ukraine's Government and law enforcement agencies to strengthen their comprehensive approach in order to achieve tangible results. Only through a coordinated and determined fight will it be possible to ensure fair competition, increase budget revenues, and improve Ukraine's investment attractiveness.
AmCham Ukraine member companies remain open to continued cooperation and are ready to provide the necessary expertise to develop and implement effective solutions to combat the illicit tobacco market.
