Police notify of suspicion co-owner of tobacco company, who turned legal factory into clandestine workshop in Kremenchuk

The estimated value of the seized property is about UAH 50 million, Ukrinform reports, citing the ESBU press service.

"At the factory, a full-cycle industrial production was organized. Detectives discovered two powerful production lines that allowed goods to be produced in huge volumes. The clandestine workshop was engaged in manufacturing dozens of different cigarette brands. The finished products were sold through an established network across the entire territory of Ukraine," the statement says.

As noted on Facebook by Prosecutor General Ruslan Kravchenko, the organizer of the scheme turned out to be a co-founder of a legal tobacco company who converted his enterprise in Kremenchuk into a clandestine workshop.

He reminded that in November last year, a large-scale underground production of tobacco products and alcohol was exposed in the Poltava region: "At that time, during searches, 38 tons of tobacco raw materials, 250,000 packs of cigarettes, more than 6,000 liters of alcohol, 190,000 counterfeit excise stamps, and complete production lines were seized. The total value was about UAH 50 million."

According to Kravchenko, during the pre-trial investigation, a number of examinations were conducted and a body of evidence was collected.

"Experts confirmed that the products were unsafe for use: the tobacco contained foreign impurities and did not meet standards, and the alcohol did not comply with requirements for vodka products. In fact, this is not just counterfeiting, but products that could harm human health and even life," the Prosecutor General stated.

Kravchenko added that all products were manufactured under the guise of well-known brands. They were sold through trusted individuals: transported by trucks for cash and sent by mail.

The losses to the budget from unpaid taxes amount to UAH 16 million.

The organizer of the scheme and 10 accomplices have been served suspicion notices for illegal production and sale of excisable goods (Article 204 of the Criminal Code of Ukraine). The issue of choosing preventive measures is being decided.

As reported by Ukrinform, the National Police dismantled an illegal tobacco supply channel to underground workshops, which involved residents of the Ivano-Frankivsk and Zakarpattia regions.