BES seizes vaping products worth UAH 30 mln from shop network in Kyiv and region

Detectives from the Bureau of Economic Security (BES) of Ukraine have exposed a group of individuals who organised the illegal production and sale of e-cigarette liquids through an extensive network of vape shops in Kyiv region, the agency's official website said.

The investigation established that from 2023, a scheme for selling so-called "self-mixes" - liquids produced outside state control - had been operating in Kyiv and Kyiv region. The goods were sold in physical shops and via online platforms with delivery across Ukraine.

According to the BEB, scheme participants evaded taxes on an especially large scale through a business-splitting mechanism using controlled sole traders and limited liability companies. The proceeds were laundered through financial transactions and used to acquire movable property.

In the course of the investigation, over 70 searches were carried out at retail, production and warehouse premises. Detectives seized 43,500 flavourings, 30,200 units of glycerin, 36,000 flavour enhancers, 19,800 cartridges, nearly 3,600 pod systems, as well as 27 sets of equipment and ingredients for manufacturing liquids.

The total value of the seized property amounts to approximately UAH 30 million. The agency noted that the sale of these products could have resulted in excise tax evasion of around UAH 20 million.

During the operation, illegal temporary structures through which goods were sold were also dismantled with the assistance of the Kyiv City State Administration.

The BEB added that the pre-trial investigation is ongoing under the procedural supervision of the Office of the Prosecutor General. The case was opened on the basis of BEB analytical materials. The agency also highlighted the health risks to citizens posed by the absence of quality control over components used in the artisanally produced liquids.