Clandestine manufacture of cigarettes results in almost USD 1,2 mln damages to state
SBU blocked a mechanism of minimizing state budget payments through illegal manufacturing and smuggling of large quantities of cigarettes abroad.
In order to carry out the fraud, the dealers arranged tobacco processing in one of the industrial factories of Okhtyrka, Sumy region. The cigarettes were marked and packed in unofficial workshops in Rivne region.
The criminals then illegally transferred the wholesale “goods” abroad.
According to the preliminary data, only in September and August the dealers produced and sold almost 100 tonnes of tobacco products. The damages to the state budget reached almost UAH 30 mln (USD 1,200,000), as the criminals failed to make the obligatory payments.
During the investigation law enforcement officers found eight pieces of equipment for tobacco processing, a manufacturing line for production of cigarettes and 14.5 tonnes of tobacco products. SBU also found three cigarette manufacturing lines and a large quantity of tobacco products in Hoshcha, Rivne region.
The investigation is ongoing under the initiated criminal proceedings stipulated by Part 2 Art. 201 (“Smuggling”), Part 2 Art. 364 (“Abuse of office or authority”), Part 3 Art. 204 (“Unlawful manufacturing, storage, sale or transportation for selling purposes of excisable goods”) of the Criminal Code of Ukraine.
This operation was conducted by the SBU Department for Fighting Corruption and Organized Crime jointly with the SBU Office and Main Directorate of the State Border Guard Service in Sumy region under the legal supervision of Military Prosecutor's Office.
SBU Press Centre
For the Attention of the SBU Head