Ukraine’s Growing Crisis with Illicit Flower Imports
Ukraine continues to struggle with a widespread problem of smuggled imported flowers, which severely impacts state revenues. Customs data reveals that only about 5% of the actual volume of flower imports is processed legally. Meanwhile, 78% of the country’s flower market operates in the shadows, with just 22% of floral products entering through legal channels. As a result, the national budget may be losing up to 2 billion hryvnias each year.
Roses at the Center of Smuggling Schemes
The situation is most critical in the rose segment. Out of roughly 3,000 tons of flowers that reached the Ukrainian market, only 136 tons went through customs clearance. Consequently, 95% of roses are brought into Ukraine illegally. Over the past three years, budget losses from roses alone have amounted to 600 million hryvnias.
A temporary parliamentary investigative commission also discovered that a large share of smuggled goods is processed through shell companies. Over three and a half years, schemes involving these firms cost the budget more than 600 million hryvnias. One key method to avoid customs duties involves misdeclaring cargo weight—for instance, declaring only one ton instead of ten. Additionally, expensive flowers are often imported under the guise of cheaper plants, reducing the applicable tariffs.
“We are not against competition, but it must be fair: we pay taxes, while flowers entering without customs clearance do not,” said Valeriy Horban.
Halyna Yanchenko also stated that “all information, including potential violators, has been handed over to law enforcement. We will check the results in a month.”
The scale of the shadow market is further confirmed by government assessments. Authorities plan to take action to combat smuggling and protect legal importers, as the flower market situation demands urgent resolution.
The issue of flower smuggling poses a serious challenge to Ukraine’s economy, not only harming the state budget but also creating unfair conditions for legitimate suppliers. The government is taking steps to address these schemes, which could positively impact the development of the legal market. However, achieving a stable situation will require comprehensive reforms in customs policy and stronger import controls. The fight against smuggling will remain a pressing concern, as it affects Ukraine’s socio-economic stability.
The ongoing challenges in Ukraine's flower market are compounded by the ongoing conflict, which has forced many producers and importers to adapt to a rapidly changing landscape. For a deeper understanding of how the war has reshaped the flower industry and the survival strategies of its key players, explore our article on how Ukraine's flower industry endures during wartime.