Business calls for balanced regulation of nicotine products instead of bans

12/ 02/ 2026

Listen to online Stop   The business community, represented by the European Business Association, the American Chamber of Commerce in Ukraine, and the Union of Ukrainian Entrepreneurs, has appealed to the Verkhovna Rada of Ukraine to reconsider the approaches to regulating nicotine-containing products set out in draft law No. 14110-d “On Amendments to Certain Laws of Ukraine Regarding the Regulation of Nicotine Products”. The associations express their gratitude to the Verkhovna Rada Committee on Public Health, Medical Assistance and Medical Insurance for involving business representatives in the профиль working group and for its openness to discussing controversial provisions of the draft law. At the same time, the analysis of the revised draft No. 14110-d indicates significant risks for the economy and the regulatory environment. A De Facto Ban Instead of Regulation The draft law proposes limiting the nicotine content in oral nicotine products to 1 mg per portion. In practice, this would make the production, import and sale of most such products currently legally available on the Ukrainian market impossible. The most common products in Ukraine contain between 3 and 20 mg of nicotine. The potential negative economic consequences of this decision include: a reduction in state budget revenues from excise duty and VAT. According to estimates confirmed by calculations of the Ministry of Finance, losses could amount to approximately UAH 1.2 billion per year, with a subsequent increase to UAH 1.5–2 billion annually; growth of the shadow market due to existing consumer demand. Previous experience with the ban on flavoured electronic cigarettes demonstrated that such policy measures lead to a large-scale shift of the market into the illicit segment and significant budget losses. This is illustrated by KANTAR research data showing that the share of illicit products in the electronic cigarette market reached nearly 94% in 2025, while annual budget losses from unpaid excise duty alone exceed UAH 5 billion. Inconsistency with International Practice Oral nicotine products are regulated in most EU countries and in the United States. In many jurisdictions, the permitted nicotine content levels are significantly higher than those proposed in draft law No. 14110-d. For example, in 10 EU countries the maximum permitted nicotine level ranges from 16 to 25 mg, while in the United States products containing 9 mg of nicotine are authorised for sale. Therefore, the proposed approach does not align with international practice. Regulatory Inconsistencies The business community is also concerned about provisions relating to: the amendment of the definition of “tobacco products” to include nicotine products without tobacco, which is inconsistent with EU Directive 2014/40/EU. This issue is also highlighted in the opinion of the Main Scientific and Expert Department of the Verkhovna Rada on the draft law; the introduction of standardised packaging and the requirement to place health warnings on 65% of the packaging surface. This exceeds the approaches applied in EU countries (where a 30% requirement applies to such products) and may infringe consumer rights and intellectual property rights in the use of trademarks. For these reasons, the European Business Association, the American Chamber of Commerce in Ukraine, and the Union of Ukrainian Entrepreneurs do not support draft law No. 14110-d in its current version. The draft creates risks for the state budget and the investment climate, contributes to the expansion of the shadow market, and does not align with the relevant EU Directive or international practice more broadly. The business community calls on Members of Parliament to further revise the draft law and introduce balanced regulation that would ensure effective control over the circulation of nicotine products on the market without imposing bans.

The business community, represented by the European Business Association, the American Chamber of Commerce in Ukraine, and the Union of Ukrainian Entrepreneurs, has appealed to the Verkhovna Rada of Ukraine to reconsider the approaches to regulating nicotine-containing products set out in draft law No. 14110-d “On Amendments to Certain Laws of Ukraine Regarding the Regulation of Nicotine Products”.

The associations express their gratitude to the Verkhovna Rada Committee on Public Health, Medical Assistance and Medical Insurance for involving business representatives in the профиль working group and for its openness to discussing controversial provisions of the draft law.

At the same time, the analysis of the revised draft No. 14110-d indicates significant risks for the economy and the regulatory environment.

A De Facto Ban Instead of Regulation

The draft law proposes limiting the nicotine content in oral nicotine products to 1 mg per portion. In practice, this would make the production, import and sale of most such products currently legally available on the Ukrainian market impossible. The most common products in Ukraine contain between 3 and 20 mg of nicotine.

The potential negative economic consequences of this decision include:

• a reduction in state budget revenues from excise duty and VAT. According to estimates confirmed by calculations of the Ministry of Finance, losses could amount to approximately UAH 1.2 billion per year, with a subsequent increase to UAH 1.5–2 billion annually;
• growth of the shadow market due to existing consumer demand. Previous experience with the ban on flavoured electronic cigarettes demonstrated that such policy measures lead to a large-scale shift of the market into the illicit segment and significant budget losses.

This is illustrated by KANTAR research data showing that the share of illicit products in the electronic cigarette market reached nearly 94% in 2025, while annual budget losses from unpaid excise duty alone exceed UAH 5 billion.

Inconsistency with International Practice

Oral nicotine products are regulated in most EU countries and in the United States. In many jurisdictions, the permitted nicotine content levels are significantly higher than those proposed in draft law No. 14110-d. For example, in 10 EU countries the maximum permitted nicotine level ranges from 16 to 25 mg, while in the United States products containing 9 mg of nicotine are authorised for sale. Therefore, the proposed approach does not align with international practice.

Regulatory Inconsistencies

The business community is also concerned about provisions relating to:

• the amendment of the definition of “tobacco products” to include nicotine products without tobacco, which is inconsistent with EU Directive 2014/40/EU. This issue is also highlighted in the opinion of the Main Scientific and Expert Department of the Verkhovna Rada on the draft law;
• the introduction of standardised packaging and the requirement to place health warnings on 65% of the packaging surface. This exceeds the approaches applied in EU countries (where a 30% requirement applies to such products) and may infringe consumer rights and intellectual property rights in the use of trademarks.

For these reasons, the European Business Association, the American Chamber of Commerce in Ukraine, and the Union of Ukrainian Entrepreneurs do not support draft law No. 14110-d in its current version. The draft creates risks for the state budget and the investment climate, contributes to the expansion of the shadow market, and does not align with the relevant EU Directive or international practice more broadly.

The business community calls on Members of Parliament to further revise the draft law and introduce balanced regulation that would ensure effective control over the circulation of nicotine products on the market without imposing bans.