In Cherkasy region, seven members of a group that, according to the investigation, organized an underground cigarette production with a capacity of up to 50,000 packs per day were served with suspicion notices. The factory was exposed back in March 2026, when law enforcement officers seized equipment, finished products, and other property worth approximately 30 million hryvnias.

The new stage of the investigation was reported on October 26 by the Bureau of Economic Security of Ukraine and the Prosecutor General's Office.

According to the investigation, seven residents of Cherkasy, Odesa, and Dnipropetrovsk regions were involved in the illegal production.

Underground factory could produce up to 50,000 packs of cigarettes daily

The illegal enterprise was set up in a warehouse on the outskirts of Uman. According to the prosecutor's office, it had been operating at least since January 2026.

Industrial equipment was installed in the premises and a full production cycle was organized - from processing tobacco raw materials to manufacturing and packaging finished cigarettes.

The capacity of the production line allowed up to 50,000 packs per day. To ensure the equipment could operate even in the absence of centralized power supply, the factory was equipped with backup power sources.

Cigarettes were manufactured under trademarks of well-known Ukrainian and European brands. According to law enforcement, the finished products were sold through retail networks in various regions of Ukraine.

However, the investigation did not disclose the total volume of products that were manufactured and sold, nor the amount of likely unpaid excise duties and other taxes.

Property worth 30 million hryvnias seized during searches

The illegal production was exposed and stopped by law enforcement in March 2026.

During searches, detectives of the Bureau of Economic Security and employees of the National Police seized a full-cycle industrial line and 295,745 packs of cigarettes of various trademarks.

In addition to finished products, law enforcement found 95 bags of fermented tobacco, 268 boxes of packaging materials, and 138 rolls of cigarette paper.

Over 36,000 dollars in cash, a cargo vehicle, mobile phones, and rough notes that may be relevant to the investigation were also seized.

The Bureau of Economic Security estimated the approximate total value of the seized equipment, products, and other property at around 30 million hryvnias. This amount is an estimate of the seized property, not established losses to the state budget.

Seven group members served with suspicion notices

As a result of the investigation, seven individuals were served with suspicion notices for illegal manufacture and storage for sale of excisable goods, committed by prior conspiracy by a group of persons.

Their actions were classified under Part 2 of Article 28 and Parts 1 and 2 of Article 204 of the Criminal Code of Ukraine.

According to the National Police, the issue of selecting preventive measures for the suspects is currently being resolved. The pre-trial investigation is ongoing.

Procedural supervision is carried out by prosecutors of the Prosecutor General's Office.

Illegal cigarette market causes billions in budget losses

Underground production of tobacco products remains one of the problems of the Ukrainian excisable goods market.

According to Kantar research, at the beginning of 2026 the share of the illegal segment was 17.6% of the tobacco market in Ukraine. Potential annual losses to the state budget from unpaid taxes were estimated at 28.1 billion hryvnias.

This is a market-wide estimate that does not directly concern the factory near Uman.

Earlier, "Ukraine's Course" reported that in September the Verkhovna Rada supported in the first reading a draft law on strengthening control over tobacco raw materials. The document provides for electronic tracking of its circulation, control of transportation, and additional requirements for manufacturers. These changes have not yet been finally adopted.

Law enforcement emphasizes that the investigation into the underground factory's activities is ongoing. All suspects are considered innocent until their guilt is proven in court.

Based on materials from: BEB, Prosecutor General's Office, National Police