Ukrainian authorities have notified the former director of a tobacco manufacturing company of suspicion in connection with an alleged tax evasion scheme that prosecutors say deprived the state of more than UAH 2.3 billion ($55 million) in excise tax revenue. According to Prosecutor General Ruslan Kravchenko, company officials allegedly organized the production and sale of unaccounted tobacco products outside official tax and accounting records while presenting the activity as legitimate manufacturing.
Investigators claim that more than 1,186 tons of tobacco raw materials were processed into cigarettes and sold without payment of excise duties, resulting in a substantial tax shortfall identified through tax audits and forensic economic examinations. Authorities further allege that company officials attempted to conceal the illegal use of raw materials by falsifying claims that the tobacco had been stolen. The former director has been charged under Article 212 of Ukraine’s Criminal Code for intentional tax evasion on an especially large scale, an offense that carries financial penalties, potential asset confiscation, and restrictions on holding certain positions. No company has been officially named in the filings; however, some in the Ukrainian media speculate that the company is Kremin Tabako.
