The SBU exposed two facts of illegal sale of alcohol and cigarettes in the Joint Forces Operation area. According to preliminary estimates, the state's losses from tax evasion and illegal trade amount to over UAH 10 m (USD 357,000).

Donetsk region:

Businessmen from the city of Pokrovsk organized large-scale illegal sale of alcohol. The dealers sold and delivered products in their own retail chain and via a website. All payments were made exclusively in cash.

The firm had off-book accounts to avoid paying taxes. The dealers managed to avoid paying over UAH 8 m (USD 286,000) of VAT to the state.

During searches of the offices and shopping premises, the law enforcement seized:

• about 14,000 liters of alcohol;
• draft accounting documentation and seals;
• almost UAH 0.5 m (USD 18,000) in cash.

The investigation is ongoing to identify all persons involved in the illegal activities.

Luhansk region:

The SBU shut down channel of illegal supply of cigarettes from the so-called "LNR", which has been operating since the beginning of the year. Cigarettes originating from the temporarily annexed AR of Crimea were smuggled into the temporarily occupied territory of Luhansk region. Then the suspects transported excisable goods through the river Siverskyi Donets on boats. The group members were selling the cigarettes through a retail chain in the eastern regions of Ukraine.

Allegedly, the suspects were smuggling cigarettes worth over UAH 400,000 (USD 14,300) across the contact line every month. According to intelligence, the channel operated under control of the so-called "MGB LNR". The terrorists received "fees" for each consignment of excisable goods passed through the contact line.

The law enforcement detained two members of the group in Stanytsia-Luhanska district. 1,500 packs of cigarettes with Russian excise stamps were seized from the detainees.

The investigation is ongoing.