The shadow cigarette market is rapidly growing: the budget is losing billions.

The illegal trade of cigarettes in Ukraine is out of control. According to the project 'Monitoring Illegal Trade of Tobacco Products in Ukraine', as of April 2025, this market has grown to 16.2%. In numerical terms, the losses to the state budget amount to about 25.2 billion UAH annually due to tax evasion. And this is only in a country where people prefer smoking over reading. The volume of illegal cigarettes exceeds five billion pieces.

'In April, we again witness an increase in the volume of illegal tobacco products and significant shares of counterfeit products. Particularly highlighted are counterfeit excise stamps, among them are conglomerates like Marshall Fine Tobacco / VK Tobacco FZE and 'Ukrainian Tobacco Production', notes Tetiana Sverdlyk, an analyst at Kantar Ukraine.

The population is being offered illegal products adorned with names like Duty Free or made for export, but are actually sold on the streets. The majority of such cigarettes originate from the Vynnyky tobacco factory. The main offers of illegal packs are located in six regions, which together account for 71% of the counterfeit product market.

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The trade in illegal cigarettes is causing significant harm to Ukrainians and is becoming an increasingly serious problem. More attention must be paid to controlling the tobacco product market to prevent further growth of illegal trade and substantial financial losses for the country.