The tobacco market remains one of the most shadow-heavy sectors. This results in billions in budget losses, the uncontrolled circulation of excisable products, and unequal conditions for legal businesses. The ESBU is working systematically to eliminate the key barriers that hinder effective action against the illicit market.
In 2025, 304 criminal proceedings were entered into the Unified Register of Pre-trial Investigations (ERDR) regarding the illegal circulation of tobacco products, 170 of which were referred to court. Based on the results of judicial review, 110 guilty verdicts have been issued, demonstrating the high effectiveness of pre-trial investigations.
In 2025, the total estimated value of seized goods amounted to UAH 2.234 billion, which is nearly 60% higher than in 2024 (UAH 1.4 billion). The operations of 28 industrial production lines were shut down, serving as a key indicator of production cessation. Additionally, the following items were seized:
Transferred for the needs of the Armed Forces of Ukraine: 4,260 packs of cigarettes and 1 vehicle.
The volume of the illicit cigarette market demonstrates a consistent decline—from 21.8% in 2023 to 15.9% in 2025. The total reduction over three years stands at 5.9%, confirming the effectiveness of systemic control measures.
Following a slight decrease in 2024 (UAH 118.08 billion compared to UAH 119.68 billion in 2023), tobacco product sales via the Registrar of Settlement Operations grew to UAH 152.47 billion in 2025. This indicates a recovery and growth in the legal circulation of tobacco products.
The current liability system provides for the confiscation of equipment only, while other property of the offenders remains in their ownership. To address this issue, the ESBU proposes to reclassify the crimes provided for in Parts 1–2 of Article 204 of the Criminal Code of Ukraine as serious crimes. This would enable the use of covert investigative actions and the confiscation of all property. Furthermore, it will contribute to the strengthening of criminal liability.
In accordance with current legislation, all law enforcement agencies are granted the authority to use special technical means for the covert collection of information. Following the adoption of the Law of Ukraine “On the Economic Security Bureau of Ukraine,” no amendments were made to the Resolution of the Cabinet of Ministers of Ukraine No. 1450, dated October 27, 2001; thus, the right to use special technical means remained with the State Tax Administration of Ukraine. The absence of these amendments critically impacts the ESBU's ability to conduct covert investigative actions and, primarily, to combat the root cause of the problem — illegal manufacturers. The ESBU has submitted a corresponding draft for consideration by the Government.
Only 9 Territorial Offices of the ESBU are currently functional, with staffing levels ranging from 27% to 60%, which significantly limits the Bureau's operational capacity at the national level. The priority has been set to complete the formation of an effective regional structure.
The ESBU, in collaboration with the Ministry of Economy, the Environment, and Agriculture of Ukraine, has initiated satellite monitoring of tobacco crops. A significant discrepancy was identified between the declared areas (840 hectares) and actual crops (14,800 hectares), revealing the massive scale of the shadow raw material cultivation.
Consequently, the situation in the tobacco market remains complex, resulting in billions in budget losses. Achieving sustainable results is only possible through systemic changes, strengthened liability, and inter-institutional cooperation with the business community and industry associations.
The ESBU has designated the fight against the illicit tobacco market and the reduction of the shadow share of tobacco production and circulation as one of its top priority areas for 2026.