---
title: "Fines Are Not Enough: Ukraine Proposes Cracking Down on Illegal Vapes"
description: "Ukraine proposes raising fines for the illegal sale of vape liquids to 250,000 UAH. Current 26,000 UAH sanctions fail to deter violators."
date: 2026-10-23T09:28:32.528Z
lang: en
url: https://xab.info/en/posts/fines-are-not-enough-ukraine-proposes-cracking-down-vapes
tags: [ukraine, vapes, taxes, economy, smuggling, fines]
author: "Darya Fomina"
publisher: "XAB.info"
---

# Fines Are Not Enough: Ukraine Proposes Cracking Down on Illegal Vapes

![A person holding various colorful disposable electronic cigarettes and vape kits in their hands](https://xab.info/media/2026/10/23/shtrafi-ne-pugayut-v-ukraine-predlagaut-zhestko-udarit-po-nelegalnskim-veypam/shtrafi-ne-pugayut-v-ukraine-predlagaut-zhestko-udarit-po-nelegalnskim-veypam-1.webp)

## Key Points

- Fines for the illegal sale of vape liquids are proposed to be increased to 250,000 UAH.
- The current 26,000 UAH fine is ineffective with daily revenues of around 7,000 UAH.
- In 2026, out of 4,000 illegal points, the tax office fined only 300.
- The government and agencies are preparing a comprehensive program to combat the tobacco shadow market.

Ukraine is considering a radical increase in penalties for the illegal sale of electronic cigarette liquids, proposing to raise maximum fines to 250,000 hryvnias. Current sanctions of 26,000 hryvnias have proven ineffective against the backdrop of a massive shadow market, where illegal retail points generate about 7,000 hryvnias daily. Experts and the government insist on a comprehensive approach, including tighter controls by the tax service, the Bureau of Economic Security, customs, and border guards to protect the budget and legal businesses.

### Scale of the Shadow Market and Ineffectiveness of Current Sanctions

According to experts, the bulk of illegal products in the e-cigarette segment is sold through individual entrepreneurs who operate without licenses to trade excisable goods. Such sellers evade value-added tax, excise duties, and other mandatory contributions to the state budget. A popular tax evasion scheme involves selling DIY mix kits where ingredients are sold separately. The average cost of such a kit is 350 hryvnias, whereas under fair taxation, its price would reach 430 hryvnias.

The current fine for retail trade without a license is 26,000 hryvnias, but violators easily cover these expenses due to high daily revenues staying at around 7,000 hryvnias. As a result, entrepreneurs continue to run shadow businesses while ignoring existing legislative restrictions. According to the State Tax Service, out of approximately 4,000 illegal e-liquid retail points identified in 2026, real fines were imposed on only 300 objects, highlighting gaps in law enforcement practice.

### Comprehensive Measures and Interagency Cooperation

To reverse the situation on the market, the government of Ukraine initiated the development of a joint strategy to combat the shadow economy. Discussion of priority steps took place on October 21 at a working meeting involving representatives of specialized agencies, including Bureau of Economic Security Director Oleksandr Tsyvynskyi and First Deputy Head of the STS Yuriy Konyushenko. Meeting participants identified curbing illegal production, combating smuggling, and eliminating tax evasion schemes in the tobacco sector as top priorities.

Taxation expert Tetiana Koshchuk emphasizes that merely adjusting fine amounts is not enough to eradicate the problem. In her view, it is necessary to deploy the entire state apparatus: tax authorities and the BES must halt underground production, while customs and border services are required to completely block illegal raw material import channels. Only coordinated work by all agencies within a single state program can bring the e-cigarette market out of the shadows.

### Significance of the Reform and Future Prospects

Strengthening control over the turnover of vape liquids is of critical importance for filling the state budget and creating fair competitive conditions. Legal market participants suffer significant losses due to unfair competition from shadow traders who sell products without paying excise duties. Implementing the measures outlined by the government will not only reduce the volume of illegal trade but also enhance consumer safety through strict quality control of sold products.

## Fact-Check & Sources

- [Штрафы не пугают: в Украине предлагают жестко ударить по нелегальным вейпам](https://www.rbc.ua/ukr/news/shtrafi-lyakayut-ukrayini-proponuyut-zhorstko-1792747503.html) - The article is fully based on official reports and expert commentary by Tetiana Koshchuk regarding the e-cigarette market situation in Ukraine.

## FAQ

### Why do current fines fail to stop illegal vapes?

The current fine is 26,000 hryvnias, while the daily revenue of illegal points reaches 7,000 hryvnias, allowing violators to easily cover these expenses.

### What fine amount do experts propose?

Experts propose increasing fines for the illegal sale of electronic cigarette liquids to 250,000 hryvnias.

### Which agencies should fight the shadow vape market?

The tax service, the Bureau of Economic Security, as well as customs and border services must join the fight.