ESBU detectives neutralized a large-scale shadow network of tobacco production and distribution across all of Ukraine in Odesa and Ternopil

 Detectives of the Territorial Office of the Economic Security Bureau of Ukraine in the Odesa region have shut down an organized group involved in the illegal manufacture, storage, transportation, and sale of tobacco products across Ukraine.

The investigation found that to avoid detection, the organizers established an 11-hectare tobacco plantation on private property in the Ternopil region. The tobacco was dried in greenhouses and shredded on-site. The raw product was then shipped via mail to Odesa, where it was processed and packaged in an underground warehouse. 

The finished goods, lacking excise tax stamps, were sold through a network of retail outlets and an online channel nationwide.

During searches in the Odesa and Ternopil regions, detectives shut down the underground production facility, dismantled the online sales channel, and liquidated the illegal retail network. Law enforcement seized over 9.1 tons of tobacco, cigarettes without excise stamps, production and packaging equipment, cigarette tubes, paper, filters, flavorings, rolling machines, cash, vehicles, bank cards, and records.

The total value of the seized assets exceeds UAH 13 million.

The pretrial investigation under Part 3, Article 204 of the Criminal Code of Ukraine (illegal manufacture, storage, or sale of excise goods) is ongoing. Efforts are underway to identify all accomplices and supply channels.

The case is prosecuted by the Odesa Regional Prosecutor’s Office, with operational support from the Strategic Investigations Department of the National Police and the 26th Border Guard Detachment of the State Border Guard Service.

Earlier, ESBU detectives exposed a member of this group who managed an illegal cigarette dropshipping scheme via social media.