Over 93% of the e-cigarette market in Ukraine is in the shadows: the problem was discussed in Brussels

The share of the illegal segment of the Ukrainian e-cigarette market in 2025 was 93.6%. Representatives of Ukraine discussed the problem of shadow trade, tax burden and legislative regulation of the industry with European partners in Brussels.

Ukraine joined the industry assembly in Brussels for the first time

On November 4, 2026, VARES representatives took part in the General Assembly of the Independent European Vape Alliance (IEVA), which was held in the capital of Belgium.

The Ukrainian association was invited to participate in this event for the first time. VARES joined the European alliance in July 2026.

IEVA unites 16 industry associations, 20 international companies and partner organizations.

One of the main topics of the Ukrainian speech was the large-scale illegal trade in e-cigarettes.

According to the results of the Kantar study presented by the association, in 2025 the share of the shadow segment in Ukraine reached 93.6%.

Representatives of European organizations discussed with Ukrainian colleagues the reasons for this situation and possible mechanisms for returning the market to the legal field.

Excise duties and prohibitions: what issues were discussed

During the meeting, the participants paid attention to tax policy, restrictions on the flavors of electronic cigarettes, the fight against illegal trade, and the prospects for updating European Union legislation.

In particular, the topic was the revision of the Tobacco Products Directive (TPD) – a European directive that regulates the circulation of tobacco and related products.

The European Commission held consultations on future changes in 2022-2023, and in April 2026 published an assessment of the current legislation.

Currently, work on updating the regulation is ongoing.

The Ukrainian side drew attention to the differences between the EU and Ukrainian approaches to the introduction of new rules.

In particular, VARES representatives recalled the decision to increase the excise tax on e-cigarette liquids to 300 euros per liter.

According to industry representatives, tax decisions and restrictions must also be assessed in light of their possible impact on the illegal market.

Different approaches to regulating nicotine-containing products are being discussed in Europe

Another issue was the differentiated regulation of traditional tobacco products and electronic cigarettes.

The material notes that on September 16, 2026, the European Parliament adopted a resolution in which it drew attention to the differences between the risk profiles of different nicotine-containing products.

At the same time, differences in risks do not mean that electronic cigarettes are safe for health.

Representatives of industry associations also discussed the experience of individual European countries, where, according to their estimates, high taxes and strict restrictions can stimulate illegal trade.

Why is this important for Ukraine

The participation of the Ukrainian association in the European meeting opens up opportunities for the exchange of experience in tax policy, market control and improvement of the regulatory framework.

In the context of European integration, Ukraine must take into account future changes in European legislation, in particular the requirements for the production, sale and control of the circulation of relevant products.

At the same time, the problem of a significant share of illegal trade raises the issue of the effectiveness of state control, payment of excise duties and enforcement of current legislation.