Tobacco mafia: where illegal cigarettes are sold the most in Ukraine
26 May 16:50
INFOGRAPHICS
In February 2025, after a long decline, the illegal tobacco market in Ukraine grew again, up to 14.1%. And most counterfeits of well-known tobacco brands were found in the Dnipro region, "Komersant Ukrainian" reports, citing a study by Kantar Ukraine, a company specializing in market research.
The company’s analytical material says that the shadow segment has resumed its activity after a period of stabilization.
How much does the budget lose due to the circulation of illegal cigarettes
According to the study, the volume of the shadow cigarette market has exceeded 5 billion units, which leads to annual losses to the state budget of more than UAH 24.2 billion.
These funds could be used to finance the defense sector, social programs or infrastructure projects. Thus, UAH 24.2 billion can buy
A particularly noticeable increase was recorded in the segment of products labeled Duty Free or intended for export, which are illegally sold on the domestic market. In February 2025, its share was 6.4%, which is almost twice as much as in October 2024. This indicates the intensification of tax evasion schemes through the use of pseudo-export channels.
In addition, a third of counterfeit products (33%) have signs of fake excise stamps. Out of this share, 25% (according to the inscription on the package) are indicated as manufactured by Marshall Finest Tobacco / United Tobacco / VK Tobacco FZE, and another 8% – by Ukrainian Tobacco Production. This is a sign of the existence of organized schemes for the production and distribution of illegal products.
Read also: Cigarettes in Ukraine: how much does it cost to smoke in 2025 and what will happen to tobacco prices
Brands of cigarettes present on the illegal market in Ukraine
More than half of the illegal products labeled as Duty Free or intended for export and illegally sold in Ukraine (55%) are produced by Vynnykivska Tobacco Factory, according to the inscription on the packaging. The main brands in this group are Compliment (50%) and Lifa (5%). The remaining 45% of this category is products with an unspecified manufacturer; the most common brands are Marshall (25%), Urta (9%), and Brut (6%).
Where illegal cigarettes are most often sold in Ukraine
Geographically, the largest volumes of trade in illicit tobacco products are recorded in six regions, which together form 73% of the market for such products:
- Dnipropetrovska – 28%,
- Odesa – 16%,
- Lviv – 9%,
- Kharkiv – 8%,
- Kyiv and Kyiv region – 7%,
- Khmelnytsky – 5%.
Experts explain that such data indicate the concentration of the shadow market in regions with high consumption and logistical capabilities for product distribution.
Kiosks and shops remain the main channels of distribution of illegal tobacco products, accounting for 68% of such products. This situation only emphasizes the need to strengthen control over retail trade and introduce effective mechanisms for tracking the origin of goods.
Experts emphasize the need for a comprehensive approach to combating the illicit tobacco market, including strengthening control over the production, transportation and sale of products, as well as improving the legal framework to effectively counteract shadow schemes.
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