The SSU jointly with the Economic Security Bureau of Ukraine has blocked clandestine production of counterfeit excisable products in industrial volumes.

The criminals were producing up to 1 million cigarettes daily under the pseudo-labels of well-known foreign brands.

The total value of the seized goods is over UAH 70 mln (USD 1.7 mln).

The unlawful activity was organized by a transregional criminal group operating in Mykolaiv and Zakarpattia regions.

The group set up 3 production lines for illegal manufacture of wholesale batches of tobacco products.

To disguise their activities, the offenders set up workshops in abandoned warehouses in remote rural areas and installed printing equipment for applying fake ‘trademarks’.

According to the investigation, the raw materials for cigarettes were purchased from local farmers and smuggled in bags for animal fodder.

The group sold the finished products across Ukraine and planned to smuggle them to the EU using forged invoices.

During the searches at the ‘production facilities’, the law enforcement found:

• technological workshops and equipment;
• a large amount of raw materials;
• printed material with trademarks of European brands;
• goods prepared for sale.

The investigation is ongoing. The criminal proceeding was initiated under the Articles of the CCU:

• 204.2, 28.3 (illegal manufacture, storage, sale or transportation for sale of excisable goods with the purpose of sale, committed by a group of persons by prior conspiracy);
• 212.3 (tax evasion).

The operation and investigation were conducted by the SSU jointly with the ESBU and the State Border Guard Service under the supervision of the Prosecutor General’s Office.