The ESBU in the Chernivtsi region uncovered a shadow tobacco factory: two industrial lines, 38 tons of tobacco, and cigarettes worth almost UAH 20 million were seized

 Detectives from the Economic Security Bureau of Ukraine in the Chernivtsi region uncovered a large-scale scheme involving the illegal production of cigarettes and the legalization of proceeds obtained by criminal means. The underground production of tobacco products was operating in the Poltava region.

 According to the investigation, a group of individuals organized the manufacture of cigarettes without licenses and excise tax stamps. To achieve this, they utilized fermented tobacco and specialized equipment that enabled them to produce large volumes of products.

The finished products were sold through shadow channels throughout Ukraine, and the profits were invested in the purchase of real estate and cars.

A total of 14 people were involved in the illegal activity, each of whom had a specific role in the organization, transportation, production, and sale of counterfeit tobacco products.

Detectives of the ESBU conducted six searches at locations associated with the criminal group. During the searches, they seized two industrial lines for manufacturing filterless cigarettes, machines for processing and grinding tobacco leaves, over 38 tons of raw tobacco, over 240,000 packs of counterfeit cigarettes with an estimated value of about UAH 20 million, pallets with printing products for cigarette manufacturing, cigarette paper and packaging film, Ukrainian excise tax stamps, rough notes, mobile phones, and illegally obtained cash, and a hardware wallet for storing cryptocurrency, as well as illegally obtained cash in various currencies in an amount equivalent to 3.7 million hryvnia.

The estimated value of the seized equipment and finished products is approximately UAH 47 million.

A pre-trial investigation is underway on the grounds of criminal offenses under Part 1, Part 2 of Article 204, and Part 2 of Article 209 of the Criminal Code of Ukraine (illegal manufacture, storage, or sale of excisable goods and legalization of proceeds obtained by criminal means).

All circumstances of illegal activities and persons involved in the organization, financing, and sale of illegally manufactured tobacco products are being established.

Operational support was provided by employees of the Department of Operational and Investigative Activities of the Administration of the State Border Service of Ukraine.

Procedural guidance was provided by the Chernivtsi Regional Prosecutor's Office.