By KYIV. Dec 18 (Interfax-Ukraine) – The share of illegal tobacco products from the total market volume in Ukraine in October of this year reached 25.7% compared to 19.5% in June and 20.2% in February, which is a historical maximum for the entire period of such studies, such data from the latest study on monitoring illegal trade in tobacco products in Ukraine by Kantar Ukraine.
“Both the share of counterfeit products has increased (up to 11.3%) and the share of products that are labeled Duty Free or intended for export, but are sold illegally in Ukraine (up to 12.9%). Average annual volume of the illegal cigarette market in Ukraine in 2023 amounted to 21.8%,” the materials note.
According to preliminary calculations by Kantar, the losses of the 2023 state budget from the illegal sale of 7.06 billion cigarettes are estimated at UAH 23.5 billion.
According to average annual indicators, 26% of counterfeit products have signs of counterfeit excise stamps and, according to the inscription on the packaging, were produced by Ukrainian Tobacco Production (15%) and United Tobacco (11%), the study indicated.
In addition, Kantar Ukraine claims, 72% of illegal tobacco products marked Duty Free or intended for export have an inscription stating that the manufacturer is Vinnykivska Tobacco Factory, and 62% of this group of illegal products are Compliment cigarettes labeled Duty Free.
According to the results of the study, the leaders in the level of distribution of illegal products are eight regions of Ukraine, where 70% of products are sold: Dnipropetrovsk – 17%, Odesa – 12%, Lviv – 9%, Kharkiv region – 9%, Khmelnytsky – 7%, Kirovohrad – 6%, Chernivtsi region – 5%, and Rivne region – 5%.
Sales of illegal tobacco products in kiosks and stores in 2023 increased compared to 2022, with 68% of illegal tobacco products sold through these trade channels, the document notes.
“The good news is that the law on closing Duty Free has already been put into effect, and the measurements were made for October. Therefore, the situation should improve a little further,” commented first deputy head of the relevant parliamentary committee Yaroslav Zhelezniak (the Holos faction).on the results of the study.
