CEO of Philip Morris Ukraine: Vaping liquid sales ban drives growth in shadow market, resulting in UAH 5 bln in tax losses

The segment of illegal electronic cigarettes in Ukraine has begun to grow actively due to the ban on the sale of liquids for them, says CEO of Philip Morris Ukraine Maksym Barabash.
"This started happening after the state banned e-cigarette liquids. According to the law, flavored vapes cannot be sold. These products have not only gone ‘in the shadow,’ but they have also stopped paying taxes," he told an Interfax-Ukraine correspondent on Thursday at the Kyiv International Economic Forum 2025 in Kyiv, discussing the market’s problems.
He explained that, due to the lack of tax obligations, such products are cheaper and therefore more popular, though not all law enforcement and government agencies are aware of the situation that has developed on the market.
According to the CEO of Philip Morris Ukraine, the state budget has not received UAH 30 billion from the shadow market of regular cigarettes to date. Additionally, the state loses another UAH 5 billion in taxes from vapes.
As reported, from July 11, 2023, the provisions of Law of Ukraine No. 1978-ИХ came into force, which prohibits the production, import and sale of liquids for electronic cigarettes with flavoring additives.