Illegal Tobacco Factory with High-tech Equipment Discovered in Ukraine

Nov.23.2022
Illegal Tobacco Factory with High-tech Equipment Discovered in Ukraine
Ukrainian enforcement officers have seized an illegal tobacco factory with a daily production of up to 20,000 cigarettes.

According to the Ukrainian News Agency for Truth and Information, law enforcement officials in Lviv region, under the leadership of the prosecutor's office, have exposed an illegal tobacco factory in the Warren region. The factory had production facilities capable of producing up to 20,000 packs of cigarettes per day and was found to have stockpiled up to 20 million hryvnias (approximately 388,000 yuan). The factory was subsequently seized.


As reported on Friday by the Office of the Attorney General, a tobacco company had its production line and packaging line seized, along with over 59,000 finished products, more than 5.5 tons of tobacco, paper, filters and components following a search operation.


The seizure of smuggled tobacco, image source: collage from RBK-Ukraine


According to an investigation, the company operates in a remote village in Wolin. The factory has installed a professional production line for raw materials and expensive high-tech equipment. The surrounding area is enclosed by high fences. Additionally, modern alarm and video surveillance systems have been installed. The organization indicates that the surrounding area ensures complete confidentiality of the factory by strengthening security patrols and other measures.


The company stores and sells finished products in the Lviv and Warren regions. "Prosecutors and investigators who have long monitored the facility have developed a special action plan to enter the facility. Law enforcement officers worked professionally - the factory's security did not pose any resistance," the news said.


At present, the issue of appointing appropriate inspections and seizures of corporate property is being resolved. According to Article 199, Part 1 of the Criminal Code of Ukraine, the investigation into the manufacture and sale of tobacco products with forged consumption tax labels is still ongoing.


According to a report by the Kantar Ukraine Institute on the tobacco market, the share of illegal tobacco products in the Ukrainian market increased by 5 percentage points (p.p.) in August 2022 compared to the annual average level in 2021. It rose from 16.9% to 21.9%, making the number of illegal markets the largest during the country's independence period.


A recent study has revealed that 56% of tobacco products illegally sold for export or free trade in 2022 were produced by Vinnytsia Tobacco Factory (located in Vinnytsia) and labeled as not intended for sale in Ukraine. The proportion of products from unidentified producers was 24% (up from 23% in 2021) and United Tobacco LLC (operating a factory in Dnipro region) accounted for 19% (up from 15% in 2021).


Statement:


This article is compiled based on third-party information and is only intended for industry exchange and learning purposes.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the truthfulness or accuracy of the content. The compilation of this article is only intended for industry communication and research purposes.


Due to the limitations of translation proficiency, the translated article may not fully reflect the original content. Please refer to the original article for accuracy.


Regarding any domestic, Hong Kong, Macao, Taiwan, or international issues, 2FIRSTS is fully aligned with the Chinese government's stance and statements.


5. The copyright of compiled information belongs to the original media and author. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

U.S. Military Could Test Nicotine Pouches and Vapes for Smoking Cessation as Washington Examiner Cites ZYN and Potential $4 Billion Reduction in Related Defense Costs
U.S. Military Could Test Nicotine Pouches and Vapes for Smoking Cessation as Washington Examiner Cites ZYN and Potential $4 Billion Reduction in Related Defense Costs
The House-passed FY2027 National Defense Authorization Act includes a provision authorizing the defense secretary to conduct a one-year smoking-cessation pilot for active-duty service members. Section 707 lists counseling, nicotine gum and patches alongside what the bill calls "electric nicotine delivery systems," nicotine pouches and heat-not-burn products. A recent Washington Examiner op-ed cited ZYN as an example in arguing for the provision, but the legislation does not name any commercial brand or supplier. ZYN is made by PMI-owned Swedish Match USA, with specified products holding FDA marketing authorizations and modified risk orders.
Sep.20
Huabao International Buys Indonesian HNB Manufacturer for RMB 90 Million, Adding OEM/ODM Capacity
Huabao International Buys Indonesian HNB Manufacturer for RMB 90 Million, Adding OEM/ODM Capacity
Huabao International Holdings Limited will acquire 100% of PT Broad Far Indonesia through two wholly owned subsidiaries for approximately RMB 90 million. The Indonesian company manufactures and sells heat-not-burn tobacco sticks and provides OEM/ODM services. The sellers are part of a related-party group controlled by Huabao International Chair and controlling shareholder Zhu Linyao. PT Broad Far Indonesia generated $4.37 million in revenue and $177,000 in profit after tax in the first half of 2026, while net assets stood at about $326,000 at June-end. An independent valuer assessed the company’s equity at approximately RMB 93.06 million. Following completion, the HNB manufacturing operation will be consolidated into Huabao International.
News
Sep.29 by 2Firsts Perspectives
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia's Therapeutic Goods Administration published a final decision on September 25 to classify 6-methylnicotine as a Schedule 9 prohibited substance under the Poisons Standard, effective October 1, 2026. TGA said the chemical has been reported in e-cigarette liquids sold in Australia and marketed as nicotine-free or nicotine alternatives, while evidence also indicates its use in preparations such as oral pouches. The government originally proposed a Schedule 7 classification but ultimately adopted the stricter Schedule 9 designation, citing acute toxicity, dependence risk, use in unapproved consumer products and misleading marketing.
News
Sep.29 by 2Firsts Perspectives
Special Report | From Oversupply to Supply Gaps: Global Tobacco Leaf Markets Diverge Ahead of 2027
Special Report | From Oversupply to Supply Gaps: Global Tobacco Leaf Markets Diverge Ahead of 2027
Global tobacco leaf markets diverged sharply in 2026, with India cutting authorised FCV production amid oversupply while Malawi faced a supply shortfall. U.S. demand improved in some leaf categories, but growers in Brazil, Colombia, Tanzania and Zimbabwe faced pressure from prices, buyer access, costs and weather. With nicotine consumption patterns also shifting, 2027 will test whether supply, demand and grower profitability can move back toward balance.
Oct.26
South Korea Extends Vape Rules to Unmanned Stores After Bringing Synthetic Nicotine Under Tobacco Law
South Korea Extends Vape Rules to Unmanned Stores After Bringing Synthetic Nicotine Under Tobacco Law
South Korea's Ministry of Gender Equality and Family said on September 14 that it plans to designate unmanned e-cigarette stores as businesses where minors are prohibited from entering or working. Operators would be required to verify customers' ages and display notices restricting access by minors. The proposal is open for public comment through October 6. The move follows an April expansion of South Korea's statutory tobacco definition that brought products made with natural or synthetic nicotine under the Tobacco Business Act. Nicotine-free liquids and products using nicotine analogues such as 6-methylnicotine, however, remain an emerging regulatory issue.
Sep.21
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
British American Tobacco Japan (BAT Japan) expanded VELO Peach Ice Medium to FamilyMart stores nationwide in Japan from September 7, 2026. The oral tobacco product first launched on July 6 and had previously been sold through VELO's official online store, glo Store Ginza and tobacco retailers. It combines peach flavor with menthol cooling at a Medium strength level and is priced at JPY 360. Japanese tobacco retailers list 15 pouches per pack. The move adds the new SKU to an existing nationwide FamilyMart distribution network for VELO rather than marking the brand's first entry into the convenience-store chain.
Sep.15