The National Police of Ukraine has reported uncovering two schemes involving the production and sale of goods presented as products of well-known brands. In the Lviv region, law enforcement officers shut down an underground cigarette factory, while in the Ternopil region suspicions were announced to members of an organized group that manufactured and sold counterfeit laundry detergents.
The underground tobacco factory was located in an industrial zone on the outskirts of Zhovkva in the Lviv region. It was uncovered in July 2026 by officers of the Strategic Investigations Department of the National Police together with the Economic Security Bureau and the Office of the Prosecutor General. The premises were equipped with industrial production lines, and the workshops were supplied with raw materials, printed materials, filters and other property. Living quarters were even arranged on site so that workers could stay there permanently.
According to the police, the factory had the capacity to produce up to 70,000 packs of cigarettes per day. It operated behind closed doors, and the organizers installed diesel substations to conceal its high electricity consumption. The finished products were sold throughout Ukraine under the brands of Ukrainian and European manufacturers through retail outlets, Telegram channels and postal operators. Excise tax stamps of unknown origin were affixed to the packs.
During the investigative actions, officers seized property worth approximately 50 million UAH (apr. 1 096 676 USD), including 27,000 packs of cigarettes, 1 tonne of tobacco, 74 boxes of filters, 3 pallets of packaging material and 302 rolls of cigarette paper, foil and packaging film. Three industrial production lines, generators, mobile phones, draft records and cash were also seized. Nine members of the group, residents of six regions of Ukraine, have been notified of suspicion under Part 2 of Article 28 and Parts 1 and 2 of Article 204 of the Criminal Code of Ukraine (illegal manufacture, storage, sale or transportation for sale of excisable goods committed by an organized group).
In the Ternopil region, the investigation established that the illegal business was organized by a resident of the Chortkiv district, who involved four other persons. Liquid laundry detergents were produced in warehouse premises in breach of applicable requirements, using chemical components of unknown origin. The finished products were labelled with the logos of well-known trademarks and sold in wholesale batches. The members of the group had clearly divided roles: some produced the detergents and plastic containers, while others were responsible for packaging, transportation, accounting and sales.
In April 2026, police officers conducted 26 authorized searches in the Ternopil and Lviv regions. Almost 9,000 litres of counterfeit laundry detergents, more than 16,000 labels, production equipment, vehicles and cash were seized. According to expert findings, two international manufacturers suffered damage of almost 13 million UAH (apr. 285 136 USD).
The organizer has been notified of suspicion under Part 3 of Article 27 and Part 3 of Article 229 of the Criminal Code of Ukraine, and the four accomplices under Part 2 of Article 27 and Part 3 of Article 229 of the Criminal Code of Ukraine (unlawful use of a mark for goods and services, a trade name or a qualified indication of the origin of goods committed by an organized group). Procedural supervision is exercised by the Ternopil Regional Prosecutor’s Office, and the pre-trial investigation is ongoing. Under Article 62 of the Constitution of Ukraine, a person is presumed innocent until proven guilty by a court verdict.