Ukraine's Economic Security Bureau Shuts Down Underground Tobacco Plants With 130,000-Pack Daily Capacity

Digital Excise System Aimed at Alcohol and Tobacco

According to Мінцифра: As part of its broader European integration push, Ukraine is moving ahead with eAksyz, a new digital platform designed to monitor alcohol and tobacco turnover. Instead of the old paper excise stamps, each pack or bottle will receive a unique DataMatrix code, making counterfeiting all but impossible. The system automatically traces every step from manufacturing or import to the cash register receipt, giving regulators complete real-time visibility and removing the human factor from control processes.

Full-scale testing of eAksyz has already been completed together with JTI, distributor DLS, and the retail chain LotOK. Separate testing of excise tax payments is underway with the State Tax Service, and the latest software release gave the market a stable API for building eAksyz-compatible solutions.

The Ukrainian system is based on the European model but offers three times more functionality. For context, a similar system in the EU uncovered 600 million illegal cigarettes and delivered €4 billion in benefits within its first year. That highlights what eAksyz could achieve in Ukraine’s efforts to suppress illegal tobacco and alcohol sales.

Underground Tobacco Plants Shut Down

In a separate operation, the Bureau of Economic Security (BEB) eliminated illegal tobacco factories operating in the Kharkiv and Lviv regions. These clandestine facilities had the capacity to produce more than 130,000 packs daily. Law enforcement seized equipment worth UAH 60 million during the operation.

The plant closures are evidence of the active work by Ukrainian authorities against the illegal cigarette trade. At the same time, the introduction of eAksyz has the potential to significantly improve control over tobacco products, reduce smuggling volumes, and strengthen state budget revenues. International cooperation and the use of modern technologies remain vital to this process.