Business calls on Europol, G7 and IMF to intensify fight against shadow cigarette manufacturers in Ukraine - AmCham
The business is concerned about the return of illegal cigarettes to the market and calls on Europol, the G7 and the IMF to help the Ukrainian authorities intensify and continue the fight against "shadow market participants".
This was discussed at the American Chamber of Commerce in Ukraine (AmCham) event dedicated fighting illegal markets which featured representatives of embassies, members of the Ukrainian Parliament, government officials, including law enforcement agencies, and businesses.
The participants of the meeting noted that shadow cigarette producers have resumed their work and are flooding the Ukrainian market with illegal products.
The situation in Ukraine requires more effective mechanisms and steps, and it has already attracted the attention of Europol, while international organizations are calling on the G7 and the IMF to enable all political instruments to continue the fight against illegal cigarettes in Ukraine, AmCham notes.
In particular, MP Oleksiy Ustenko raised the issue of counterfeit international brands sold in kiosks.
"Illegal producers have resumed their work on a massive scale and are selling their products all over Ukraine, for example, we see Marlboro in kiosks in the Kharkiv and Poltava regions," the MP said.
During the roundtable, Howard Pugh, former head of the Excise Fraud Unit at Europol, urged to continue the effort against the largest illegal cigarette producers in Ukraine.
"Illegal cigarettes are a threat to the national security. Political will to fight against illegal tobacco production and trade is essential. Huge amounts of lost revenue could be used to provide important public services. Public demand can be reduced only when people realize that consuming illegal products directly finances organized criminal groups," said Howard Pugh.
It should also be noted that the U.S.-Ukraine Business Council sent a letter to the G7 and IMF members calling upon increased efforts to continue combating the illegal tobacco market.
"We call on the G7 members and the IMF to mobilize all political instruments and, together with Ukraine, to exert every effort to battle the most serious forms of organized crime, illicit trade, and illegal cigarette market corruption," the letter states.
As a reminder, according to a study by Kantar Ukraine, the level of illegal tobacco products trade in Ukraine decreased to 14.6% in July 2024 compared to 18% in April this year. Tax losses to the State Budget of Ukraine in 2024 from the illegal tobacco market are estimated at UAH 23 billion.
