Tobacco smuggling, including counterfeit products, is presently assessed as one of the most serious risks to border security at the Moldova-Ukraine border, causing the loss of millions of euros to the state budgets of Ukraine and EU member states countries (estimation made by OLAF is €10 bn/year). The likelihood of the illegal movement of cigarettes from Moldova to Ukraine, especially at the central border segment of the border, is high. Analysis of the suspect movement of cigarettes into Transnistria indicates that the delivery of tobacco products vastly exceeds the potential demand on the Transnistrian local market (the population is approx. 500,000). This leads to the conclusion that the products are being moved towards the much larger market in Ukraine and also transited via Moldova to the EU. As an example, from January-June 2014, approximately 7.5 bn cigarettes and 1,592 tons of raw tobacco were delivered to Transnistria.
According to analysis presented by the global cigarette producer ‘British American Tobacco, the smuggling and illicit production of cigarettes in Ukraine decreased in August 2015 to 1,2 % out of the total market compared to 4% in 2014 and 9,2% in 2013. The substantial decrease of illicit cigarettes on the Ukrainian market is related, inter alia, to the decreased smuggling of cigarettes from Transnistria due to efforts of the Ukrainian and Moldovan authorities as well as EUBAM. EUBAM has received several recognitions of thanks from its work on this (OLAF and the UA Association of Tobacco Retailers).
Task Force Tobacco is EUBAM’s key mechanism for engaging with our Moldovan and Ukrainian partners as well as wider stakeholders on the specific issues related to the illicit trade in cigarettes. This systematic and focused mechanism has proved itself to be successful. It has encouraged partners to share intelligence and develop integrated methods for dealing with a common problem. It has also facilitated contacts with their counterparts in EU member states and other countries, as well as the broader business community.
To achieve a more coherent approach, the Mission has recommended that Moldova and Ukraine adopt national strategies to counter the illicit trade in tobacco products, starting with the law‐enforcement component. Both Governments have accepted this as the way forward. Moldovan Customs Service has already launched the service Anti-illicit Tobacco Trade Strategy on 27 October 2015 together with EUBAM and OLAF. The next step is to develop the Moldovan Customs Service Anti-illicit Tobacco Trade Strategy into the national one as well as to develop the analogical national strategy in Ukraine. Once adopted, the national strategies will form an effective basis for deeper partnerships with concerned European and international agencies.