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Business сalls for regulation of precursor circulation in Ukraine

09/ 05/ 2025
  On 6 May, a joint meeting was held between representatives of the European Business Association, the American Chamber of Commerce, and the Ukrtyutyun Association to discuss amendments to the list of narcotic drugs, psychotropic substances, and precursors (Cabinet of Ministers Resolution No. 770). The dialogue was joined by representatives from the Ministry of Economy of Ukraine, the Ministry of Internal Affairs of Ukraine, the State Customs Service of Ukraine, and the State Service of Ukraine on Medicines and Drugs Control. Businesses raised concerns about import challenges related to raw materials, particularly due to the presence of piperonal in products. Although used in minimal quantities in tobacco production, piperonal falls under regulatory control, complicating business operations and creating barriers for production and exports. Unlike the EU, Ukraine lacks exemptions for substances from which the precursor cannot be economically extracted. Businesses propose excluding piperonal contained in finished tobacco products from control in order to avoid legal disputes, tax losses, and a decline in export potential. The tobacco industry is one of the largest taxpayers in Ukraine, and a constructive resolution of this issue is essential to ensure stable business operations, tax payments, foreign currency inflows, and job retention — all of which directly affect macroeconomic stability. Representatives of the aforementioned ministries and agencies did not express objections to the proposal. The business community urges the Ministry of Health of Ukraine and the Ministry of Internal Affairs of Ukraine to consider the industry’s position, as it is one of the largest taxpayers and an important contributor to the national economy.

On 6 May, a joint meeting was held between representatives of the European Business Association, the American Chamber of Commerce, and the Ukrtyutyun Association to discuss amendments to the list of narcotic drugs, psychotropic substances, and precursors (Cabinet of Ministers Resolution No. 770).

The dialogue was joined by representatives from the Ministry of Economy of Ukraine, the Ministry of Internal Affairs of Ukraine, the State Customs Service of Ukraine, and the State Service of Ukraine on Medicines and Drugs Control.

Businesses raised concerns about import challenges related to raw materials, particularly due to the presence of piperonal in products. Although used in minimal quantities in tobacco production, piperonal falls under regulatory control, complicating business operations and creating barriers for production and exports.

Unlike the EU, Ukraine lacks exemptions for substances from which the precursor cannot be economically extracted. Businesses propose excluding piperonal contained in finished tobacco products from control in order to avoid legal disputes, tax losses, and a decline in export potential.

The tobacco industry is one of the largest taxpayers in Ukraine, and a constructive resolution of this issue is essential to ensure stable business operations, tax payments, foreign currency inflows, and job retention — all of which directly affect macroeconomic stability.

Representatives of the aforementioned ministries and agencies did not express objections to the proposal. The business community urges the Ministry of Health of Ukraine and the Ministry of Internal Affairs of Ukraine to consider the industry’s position, as it is one of the largest taxpayers and an important contributor to the national economy.

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