cigarettes

The cigarette industry in Ukraine faces significant challenges in 2025 as legal and illegal activities impact the economy and state budget. The delay in signing a law to increase excise duty on tobacco products has already cost the Ukrainian budget UAH 579.9 million. Illegal cigarette trade continues to be a major concern, with organizations like Europol, the G7, and the IMF being called upon to help combat illicit activities. It is estimated that Ukraine loses over €500 billion in budget revenues from cigarette contraband. The British American Tobacco company has relocated its regional center from Kyiv to Bucharest, highlighting shifts in the regional tobacco market. Moreover, Ukrainian officials have stepped up efforts to prevent cigarette smuggling at borders, seizing large consignments in the Zakarpattia and Odesa regions with the help of tax police and the Security Service of Ukraine (SBU). These developments underscore the complex dynamics of the cigarette market in Ukraine, encompassing government policies, economic implications, and international collaborations in tackling illegal trade.