The Ukrainian tobacco shadow economy has been growing steadily since 2018. Back then, it accounted for 4.7% of the market. This trend accelerated after the start of the full-scale war. By the end of 2023, experts from Kantar Ukraine estimated that one in four cigarettes in Ukraine was produced illegally.

However, by March 2024, the overall level of illegal tobacco trade in Ukraine had decreased to 19.1% from 25.7% in October of the previous year. This decline is attributed to efforts to counteract illegal distribution schemes.

Media reports identify the major counterfeit producers in Ukraine, detailing locations and naming individuals who profit from these activities.

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