The Bureau of Economic Security of Ukraine emphasizes the need for a significant update of the regulations controlling the electronic cigarette market. Following a series of large-scale raids in various regions of the country, during which underground production and illegal trade in vapes were uncovered, experts note that the current regulatory system is failing to meet its objectives.
This is reported by Finway
“The current market control model is essentially ineffective without systemic changes.”
As explained by BEB Director Oleksandr Tsyvinskyi, the successes of law enforcement in dismantling illegal workshops have only a short-term impact. After the closure of certain illegal points, the market quickly replenishes with new participants. This indicates that the problem lies not only in underground production but also in the absence of clear and understandable rules that would allow for legal operation without the risk of going underground.
Two Paths for State Policy
The leadership of the BEB outlined two main options for the future strategy of regulating the vape market. The first path involves the complete legalization of the industry, accompanied by transparent operating conditions for all operators. The second involves significantly increasing responsibility for any manifestations of illegal activity. The main goal of such changes is to create economic incentives for conducting business officially, so that it is more profitable to operate “above board” than to remain in the shadow segment.
Large-Scale Operation in Twelve Regions
Recently, law enforcement agencies conducted a comprehensive operation in twelve regions of Ukraine aimed at illegal production and sale of electronic cigarettes. As part of this coordinated campaign, which took place under the procedural control of the prosecutor’s office and with the participation of several law enforcement agencies, production sites, warehouses, and retail points operating outside the law were inspected.
It is also worth noting that the Cabinet of Ministers of Ukraine has already adopted a resolution that paves the way for the complete digitization of the tobacco products market. In particular, it concerns the launch of the electronic platform eTobacco to ensure transparency in the industry for both government structures and consumers.