ESBU’s large-scale strike on the illegal vape market: over 70 searches conducted, UAH 30 million in property seized

 Detectives of the Main Detective Unit of the Economic Security Bureau of Ukraine have uncovered a group organized in the illegal production, storage, transportation, and sale of e-cigarette liquids. More than 70 searches were conducted across a well-known vape shop chain. Assets worth UAH 30 million were seized.

The investigation established that since 2023, a scheme for selling so-called "home-brews"—e-cigarette liquids manufactured outside of state control—had been operating in Kyiv and the Kyiv region through an extensive network of vape shops. Simultaneously, the products were sold via online platforms and delivered to consumers throughout Ukraine.

Furthermore, the scheme participants committed large-scale tax evasion through a business fragmentation mechanism. While the sales network effectively operated as a single entity, it was formally split among a number of controlled individual entrepreneurs (FOPs) and LLCs to reduce the tax burden.

As part of a large-scale operation to halt these illegal activities, ESBU detectives conducted over 70 searches of retail, production, and storage facilities, as well as the residences of those involved.

During the investigative actions, the illegal production and sale of vaping products were documented. Significant quantities of excisable goods and manufacturing components were seized: 43,487 flavorings, 30,243 units of glycerin, 36,044 flavor and strength enhancers, 19,781 cartridges, 3,590 pod systems, 27 sets of equipment, and bulk ingredients for liquid production—including propylene glycol, glycerin, and flavorings.

The total value of the seized property is approximately UAH 30 million.

Thanks to the timely detection and termination of these illegal activities, significant losses to the state budget were prevented. The sale of the seized excisable products to end consumers could have resulted in the evasion of approximately UAH 20 million in excise taxes.

Simultaneously, illegal kiosks (MAFs) used to sell the goods were dismantled. These operations were carried out with the assistance of the Kyiv City State Administration.

The pre-trial investigation is ongoing. The grounds for entering the information into the Unified Register of Pre-trial Investigations were analytical products from the Department of Information Analysis and Risk Management of the Economic Security Bureau of Ukraine.

Procedural oversight is being provided by prosecutors from the Office of the Prosecutor General of Ukraine.

The ESBU emphasizes that this is not only about economic offenses but also a threat to public health. The production of e-cigarette liquids outside of state control—without component testing or compliance with quality standards—makes it impossible to guarantee safety. This creates real health risks, especially among young people, who are the primary consumers of such products.