Ukrainian authorities dismantle $3.4 million shadow market for vaping liquids

Large-scale police raids target illegal e-liquid operations across Ukraine

According to Главком: In a coordinated crackdown spanning three Ukrainian regions-Kyiv, Vinnytsia, and Odesa oblasts-law enforcement agencies have exposed a sprawling black market for e-cigarette liquids. Seized assets total more than 125 million hryvnias (approximately $3.4 million), and investigators uncovered illicit production, bottling, storage, logistics, and retail networks. The products were disguised as separate components to evade excise taxes, authorities said.

Raids yield massive hauls in each region

In the Kyiv region alone, over 100 searches led to the confiscation of assets worth more than 120 million hryvnias. Items seized include:

• three liquid filling and packaging lines;
• over 708,000 units of flavorings, glycerin, and nicotine;
• more than 600 liters of propylene glycol;
• nearly 9,000 liters of pre-mixed liquids;
• over 36,000 vaping devices and components.

In Vinnytsia region, a 26-year-old ringleader recruited two female accomplices and used 12 shell individual entrepreneurs to launder money. The illegal operation there generated nearly 67 million hryvnias in turnover. Police seized thousands of POD systems, tens of thousands of cartridges, and almost 93,000 containers of liquid. Three group members have been notified of suspicion; the organizer also faces charges of money laundering.

In Odesa, 11 searches at retail outlets netted goods worth over 4.8 million hryvnias, including:

• e-cigarettes;
• e-liquids;
• untaxed cigarettes;
• hookah tobacco;
• more than 12,000 units of glycerin;
• nearly 7,000 units of nicotine;
• about 17,000 units of flavorings;
• over 2,600 e-cigarette cartridges.

All confiscated items have been sent for forensic examination, and the investigation is ongoing.

Ruslan Kravchenko, a law enforcement spokesperson, stated: 'More than 150 searches were conducted. We seized products, equipment, cash, electronics, handwritten ledgers, and other assets worth over 125 million hryvnias. The regions differ, but the schemes are similar. Prosecutors and officers targeted every key stage: from illegal production, packaging, and storage, to logistics, retail sales, financial transactions, and distribution channels across Ukraine.'

He added: 'There was no state oversight or excise tax payment whatsoever. These liquids undergo no quality checks, lack certification, and may contain hazardous substances. People have no idea what they are inhaling.'

According to official data, Ukraine’s state budget lost 34 billion hryvnias in 2025 due to illegal trade in tobacco products and e-liquids, with losses from the gray market for vaping liquids alone reaching 7.5 billion hryvnias. Projected tax losses from the vape market in 2026 stand at 10 billion hryvnias.

This operation highlights the severe challenges posed by Ukraine’s illicit e-liquid trade, which not only drains state revenue but also endangers consumer health. The uncovered schemes reveal organized crime actively exploiting gaps in legislation and enforcement. Continued law enforcement actions could reshape regulatory approaches to this market, an important step toward ensuring consumer safety.

The crackdown on illegal operations is not isolated, as similar actions have recently taken place across Ukraine. For instance, authorities in Kharkiv dismantled a fraudulent chemical production facility that was generating significant profits each month. This highlights the ongoing efforts by law enforcement to combat various forms of illicit trade in the country.