Leading business associations in Ukraine have expressed their support for law enforcement actions aimed at dismantling a large-scale illegal operation producing e-cigarette liquids. This initiative is seen as a crucial step toward the full legalization of the excise market.
The associations commended the efforts of the Office of the Prosecutor General of Ukraine and the Bureau of Economic Security for their recent success in uncovering and halting significant illegal production and distribution activities related to e-cigarettes.
They anticipate that ongoing systematic actions by law enforcement will contribute to:
- Reducing the shadow economy,
- Enhancing trust in institutions,
- Creating a more competitive business environment.
The European Business Association (EBA) emphasized that curbing illegal trade is vital for ensuring fair market conditions and compliance with regulations governing excise goods.
The EBA noted that such cases illustrate the inevitability of accountability for economic offenses, advocating for a systematic approach to enforcement.
Meanwhile, the American Chamber of Commerce in Ukraine (ACC Ukraine) highlighted the extensive scale of the shadow market. According to a study by Kantar Ukraine, approximately 93% of the e-cigarette market operates illegally. This situation reportedly results in an annual loss of around 7.5 billion hryvnias in tax revenue for the state.
ACC Ukraine pointed out that the successful execution of a comprehensive law enforcement operation serves as a compelling example of effective inter-agency collaboration in combating the shadow economy.
“The dismantling of a complete cycle of illegal supply chains for excise goods has dealt a significant blow to unlawful practices that distort fair competition and deprive the state budget of substantial revenues,” the ACC stated.
The Federation of Employers of Ukraine also stressed the importance of eliminating illegal schemes for restoring competition and ensuring compliance among all market participants.
The Federation highlighted that predictable government policy and consistent responses to economic offenses are essential for legitimate businesses.
On April 13, 2026, it was reported that detectives from the Main Detective Unit of the Bureau of Economic Security of Ukraine uncovered a group involved in the illegal production, storage, transportation, and sale of e-cigarette liquids.
According to law enforcement, this illegal production and distribution scheme had been operational since 2023.
The operation involved a complete cycle of handling nicotine-containing mixtures, including banned flavored liquids, which were sold through both offline outlets and online stores.
During the special operation, over 70 searches were conducted across several regions of Ukraine. Authorities seized raw materials, equipment, finished products, as well as financial documents and technology. The total value of the confiscated assets was approximately 30 million hryvnias.
Ukrainian business associations have voiced strong support for law enforcement's recent crackdown on illegal e-cigarette production. This operation aims to reduce the shadow economy and promote legal compliance in the market.