The Security Service of Ukraine blocked the large-scale production and sale of counterfeit excisable tobacco products. Every month, the malefactors sold cigarettes worth over UAH 10,000,000 (USD 360,000).

Allegedly, the clandestine manufacture was organized by three residents of Zhytomyr and Khmelnytskyi regions. In total, about 20 people, including couriers and distributors, were involved in the crime. The dealers set up “production” in several rented warehouses in Khmelnytskyi. Finished products with counterfeit excise tax stamps were sold through a retail network in the region, and were also sent by post and trucks to Zhytomyr, Lutsk, and Luhansk regions.

Since the beginning of this year, the state budget has not received more than UAH 5,000,000 (USD 180,000) due to the non-payment of mandatory payments by the mandatories.

Within the framework of the initiated criminal proceedings, law enforcement officers carried out searches at the places of production, storage and residence of the persons involved in the case in 4 regions of Ukraine. During the investigation, more than 960 boxes of counterfeit goods with 480,000 packets of counterfeit cigarettes, raw materials, and rough notes were seized. Also, the operatives found a truck with illegal goods, prepared for shipment to customers.

The actions of malefactors are qualified under Art. 199 of the Criminal Code of Ukraine.

The investigation is ongoing. Information on the sale of counterfeit goods in other regions of Ukraine and cigarette smuggling to Europe is being checked.

The operation was conducted by the officers of the Main Directorate of Counterintelligence Protection of States’ Interests in the sphere of economic security jointly with the SBU Office in Zhytomyr region and investigators of the National Police under the procedural guidance of the Berdychiv Local Prosecutor's Office.