The court ordered to pay a fine of UAH 4.5 million to the Ukrainian budget for counterfeiting Philip Morris cigarettes

The Court of the Chernivtsi Region has sentenced three members of an organized criminal group who systematically exported counterfeit cigarettes disguised as empty gas carriers abroad. The case involves more than 800,000 cigarettes, including tobacco products bearing the Marlboro trademark, owned by Philip Morris Brands Sarl.

Sayenko Kharenko's attorneys supported the case in court.

The court ruled to impose a cumulative fine amounting to approximately UAH 4.5 million to be paid to the state budget, prohibited the offenders from transporting excisable goods in the future, and ordered the confiscation of the seized property, including the semi-trailers used in the illegal activities. It also ordered the destruction of all counterfeit tobacco products (over 800,000 cigarettes), printing equipment, and packaging materials.

This is Philip Morris' second successful case in Ukraine to defend the company's brands in court.

This case demonstrates the effectiveness of protecting the interests of legal businesses that systematically pay taxes and contribute to the state budget. This is especially important during a full-scale war in Ukraine when every contribution to the budget is critical.

To recap:

In February 2024, customs officers together with the State Bureau of Investigation detained gas carriers on the border of Ukraine and Romania that were registered as empty. After inspection, 335 boxes of counterfeit Marlboro cigarettes were found in the tanks. This is the first time law enforcement officers have been able to expose a systematic scheme for smuggling counterfeit Marlboro cigarettes into the EU. The case became high-profile and attracted the attention of international partners and G7 ambassadors.

The illicit tobacco market remains a critical problem in Ukraine. According to Kantar-Ukraine research, in July 2024, the illegal rate amounted to 14.6%, decreasing from a historic high of more than 25% as of October 2023. State budget losses are estimated at UAH 20 billion a year.