Tobacco sales fall 87%, alcohol sales down 50% in duty-free shops in Ukraine from Oct 2023 to March 2024

MOSCOW. April 22 (Interfax) - The sales of tobacco products by duty-free stores per cash receipt in Ukraine fell 87%, alcoholic beverages down 50% from October 2023 to March 2024 compared to the same periods in 2022 and 2023, Ukrainian media reported, citing the Ukrainian State Customs Service as saying on social media.

The number of tobacco products per cash register receipt dropped from 15 to two packs, which resulted in a 91% decline in the volume of product sales from 9.6 million to 847,200 packs, the statement said. The average volume of alcoholic beverages per cash register receipt dropped from two to one liter compared to the same periods in 2022 and 2023, and accordingly the sales fell 42% from 944,200 liters to 544,700 liters.

Currently, 39 duty-free stores are registered in Ukraine, while 14 of them are operating, and 25 stores are not operational, the service said.

As reported, the law introducing amendments to the Ukrainian Customs Code and other Ukrainian laws aimed at combating illegal trafficking of tobacco products was enacted in Ukraine on October 1, 2023. In particular, the law stipulates the volume of tobacco products and alcoholic beverages sold to one person during the 24-hour period and envisages administrative liability for exceeding these limits.

In accordance with the law, the sale of tobacco products by duty-free stores to one person over the 24-hour period in the volume exceeding 50 cigarettes or ten cigars or 20 cigarillos (weighing no more than three grams each) or 50 grams of tobacco, or these products in a set with a total weight of more than 50 grams is prohibited until the termination or lifting of martial law in Ukraine.

At the same time, the sale by duty-free stores to one person during the 24-hour period in the volume exceeding two liters of alcoholic beverages with alcohol content not exceeding 22% or one liter of strong (with alcohol content exceeding 22%) alcoholic beverages is restricted.