Every third pack of cigarettes in Ukraine is counterfeit.

According to an analysis of 2022 alone, Ukraine lost more than UAH 26B in tax revenue from the illegal trade of cigarettes, said Senior VP at Philip Morris, Gregoire Verdeaux.

“Moreover, according to the KMPG report, Poland, France, Estonia, Germany, and Italy suffer from illegal cigarettes produced or exported from Ukraine,” he said.

For example, in August 2022 the Ukrainian market’s share of illegal tobacco products reached an unprecedented 21.9%. The current level of illegal trade may lead to state budget losses of UAH 22B ($600M) in 2023.

According to Verdeaux, every third pack of cigarettes is counterfeit for all four international tobacco companies operating in Ukraine. Verdeaux emphasized that reducing illegal market share in Ukraine is possible only if there is a systematic fight against illicit trade at all levels.