70 raids in five regions: Illegal vape production uncovered in Ukraine
13 April 12:51
Law enforcement officials have uncovered a scheme involving the illegal production and sale of e-cigarette liquids that had been operating in Ukraine since 2023. The BEB press service and Prosecutor General Ruslan Kravchenko announced the dismantling of the scheme, according to "Komersant Ukrainian"
What exactly did law enforcement uncover?
According to the investigation, a scheme for the illegal production and sale of e-cigarette products was operating in Ukraine. Members of the network manufactured and sold nicotine-containing mixtures, flavored e-liquids, and other related products.
The BEB noted that the network effectively operated as a single business, but was formally divided among a number of sole proprietorships and LLCs under its control. According to the investigation, this scheme was used to reduce the tax burden and conceal the true scale of the operation.
How the scheme worked
According to law enforcement officials, the organizers of the illegal business not only manufactured and sold products but also subsequently laundered the proceeds.
The BEB explained that the money was routed through financial transactions, transferred between accounts, and reported as income from supposedly legitimate activities. This allowed them to conceal the origin of the funds and use them to purchase movable property.
Thus, investigators view this scheme not only as the illegal sale of excise-taxed products but also as a mechanism for disguising income from illegal business.
How many people were involved
According to Prosecutor General Ruslan Kravchenko, over 200 people were involved in the illegal business operation. According to the investigation, they were responsible for the entire cycle of circulation of nicotine-containing mixtures—from production to sale through physical retail outlets and online stores.
Where the searches took place
As part of the special operation, law enforcement conducted over 70 searches at retail, manufacturing, and warehouse facilities, as well as at the residences of individuals involved in the scheme.
Investigative actions took place in Kyiv and five other regions:
- Kyiv;
- Kirovohrad;
- Poltava;
- Cherkasy;
- Chernihiv.
This was a large-scale operation that spanned several regions of Ukraine.
What was seized during the searches
During the investigative actions, law enforcement officers seized significant quantities of excise goods, raw materials, and production equipment.
Among the items seized:
- 43,487 flavorings;
- 30,243 units of glycerin;
- 36,044 flavor and strength enhancers;
- 19,781 cartridges;
- 3,590 pod systems;
- 27 sets of equipment;
- unpackaged ingredients for liquid production—propylene glycol, glycerin, flavorings, and others.
In addition, according to law enforcement officials, over $70,000 in cash, computer equipment, and documentation were seized.
What losses could the state have incurred
According to preliminary estimates, if the seized goods had been sold, the state budget would have lost approximately 20 million hryvnias.
This means that the illegal scheme not only violated the rules governing the circulation of excise goods but also caused significant losses to the budget.
What happened to the kiosks and retail outlets
Concurrently with the investigative actions, law enforcement officers, in cooperation with the Kyiv City State Administration, closed and dismantled the kiosks through which the network sold its products.
According to the investigation, it was through these illegal outlets that vaping products were sold. After the scheme was exposed, these kiosks were dismantled.
What is the value of the seized property
The total value of the seized property is approximately 30 million hryvnias. Authorities plan to seize this property in accordance with established procedures.
This amount indicates the large scale of the illegal business, which operated for several years and had an extensive distribution network.
