Cigarette sales are down 11-12% through June, year over year

Cigarette sales are down 11-12% through June, year over year, Interfax-Ukraine reports, citing Paul Holloway, general manager of Japan Tobacco International Ukraine. Starting Jan. 1, a 20% tax hike is expected to further depress sales. With many cigarette brands selling for only $1 a pack, Ukraine is the top source of smuggled cigarettes into the EU, according to a KPMG survey. Last year, 4.8 billion cigarettes were smuggled from Ukraine into the EU, accounting for almost 11% of the total volume.