Boris Johnson is calling for urgent measures to be taken to put a stop to a cigarette smuggling ring from Ukraine worth 200 million pounds sterling
Former British Prime Minister Boris Johnson has called on the British authorities to investigate the possible involvement of two companies registered in the UK in a scheme to illegally manufacture and sell cigarettes in Ukraine. According to estimates cited in the Daily Mail article, such activities could cost the Ukrainian budget around £200 million in tax revenue each year.
According to the publication, two British companies, registered at the address of a former NatWest branch in Watford, are shareholders in the Ukrainian manufacturer Marshall Finest Tobacco. Both companies belong to a structure registered in Belize, whilst the third shareholder in the company is a firm from the Seychelles.
The Daily Mail notes that Marshall Finest Tobacco is implicated in criminal proceedings by Ukraine’s Economic Security Bureau. Investigators are examining the theory that, under the guise of legal production, some tobacco products may have been sold in Ukraine using counterfeit excise stamps, as well as being illegally supplied to European Union countries. In 2024, a Ukrainian court authorised further investigative measures within the scope of these proceedings.
The Ukrainian Economic Security Bureau confirmed to journalists that the criminal proceedings remain open and the pre-trial investigation is ongoing. At the same time, the case has been pending for over two years, and no final court ruling has yet been issued.
Boris Johnson described the situation as “an absolute scandal”. “At a time when this heroic country needs every penny of its tax revenue to fight Putin’s army, we must put an end to such schemes and hold those responsible to account,” he said.
Journalists note that, according to an April study by Kantar Ukraine, the proportion of counterfeit goods reached almost 20 per cent, compared with 14.1 per cent in February last year. This means that one in every five packets of cigarettes in Ukraine is now illegal. Last year, the illegal cigarette market may have cost the budget nearly 500 million pounds in tax revenue. Research firm Kantar estimates that in 2025, products under the Marshall brand accounted for around 37 per cent of the illegal cigarette market in Ukraine.
Igor Bratchenko, Director of Marshall Finest Tobacco, categorically denied the company’s involvement in the illegal production, smuggling or sale of counterfeit tobacco products. According to him, the company operates in accordance with Ukrainian law, is a major taxpayer and cooperates with law enforcement agencies to identify violations and combat the distribution of counterfeit products.
Previously, the Verkhovna Rada Committee on Finance, Tax and Customs Policy had also highlighted the low effectiveness of the Economic Security Bureau. In particular, MP Danylo Getmantsev noted a deterioration in the performance of the revamped Economic Security Bureau and a halt to the de-shadowing of the economy.
“Whilst the shadow market for cigarettes stood at 12.6 per cent in October 2024, by the end of 2025 this figure had already reached 17.8 per cent. In effect, all the achievements and progress made by the tax and law enforcement authorities in 2024 were undone during 2025,”the committee’s decision stated, following a hearing on the BEB’s 2025 activity report and the state of the country’s economic de-shadowing.
