In Ukraine, the volume of the shadow economy exceeds ₴1 trillion, significantly impacting tax revenue losses and creating unequal conditions for businesses. This was stated by the head of the parliamentary committee on finance, tax, and customs policy, Danilo Hetmantsev.
This is reported by Business • Media
Main Shadow Schemes and Their Impact on the Economy
Among the key issues that continue to hinder the development of the Ukrainian economy are smuggling, the payment of salaries “in envelopes,” and abuses related to value-added tax. Particularly widespread are schemes that involve splitting large businesses into networks of individual entrepreneurs. Such shadow practices, according to Hetmantsev, distort the market and harm transparent participants in the business environment.
“If we allow the parallel existence of white and black systems within one jurisdiction, we have no future for the normal development of the economy. This distorts the conditions for fair competition, which harms transparent businesses.”
Priorities for Combating the Shadow Market in 2026
Parliament has identified the de-shadowing of the market for excise goods — fuel, tobacco, and alcohol — as one of the main tasks for 2026. Despite some successes in the fuel sector, by the end of 2025, the share of the illegal market in the tobacco industry has risen to 18%.
In 2024, thanks to measures aimed at de-shadowing the economy, the state budget received over $2.5 billion in additional revenues. In 2026, further implementation of the European Customs Code and enhanced control over transfer pricing is planned, which is expected to contribute to a reduction in shadow schemes.