Tobacco "scheme" worth 50 million: in Kremenchuk, co-owner of factory exposed for counterfeiting famous brands

Tobacco "scheme" worth 50 million: in Kremenchuk, co-owner of factory exposed for counterfeiting famous brands

In the Poltava region, law enforcement officers uncovered a powerful illegal production of cigarettes and alcohol organized by the co-owner of a legal tobacco company. The production operated at a factory in Kremenchuk, where counterfeit products were manufactured under the guise of well-known brands and sold through intermediaries. In April 2026, the organizer and 10 other suspects were notified of suspicions for the illegal production and sale of excisable goods.

The illegal production was discovered back in November 2025 during searches in the Poltava region. Security forces seized 38 tons of tobacco raw materials, 250 thousand packs of cigarettes, over 6 thousand liters of alcohol, and 190 thousand counterfeit excise stamps.

Full-scale production lines were set up on the territory for mass production of goods. The total value of the confiscated property amounts to about 50 million hryvnias.

Counterfeit at the factory. Snapshot - screenshot from the Office of the Prosecutor General video

According to the investigation data, the scheme was created by the co-founder of an officially registered tobacco company. He converted the factory in Kremenchuk for illegal production.

Goods imitated popular brands to avoid suspicion and simplify sales. Sales were carried out through trusted persons: products were delivered by trucks for cash or sent by mail.

During the pre-trial investigation, examinations were conducted that confirmed the harmfulness of the products. Tobacco products contained foreign impurities and did not meet standards, while the alcohol did not meet vodka requirements. In fact, it was dangerous products that posed a threat to consumers’ health.

In addition to the risk to citizens’ health, the state suffered significant financial losses. Budget losses from unpaid taxes amount to approximately 16 million hryvnias. Currently, the organizer and 10 other persons have been served suspicions under Art. 204 of the Criminal Code of Ukraine. The issue of selecting preventive measures is being resolved, and the investigation continues.