The government[1] accepts, supports or endorses any offer for assistance by or in collaboration with the tobacco industry[2] in setting or implementing public health policies in relation to tobacco control[3] (Rec 3.1)

The Law of Ukraine “On Measures of Prevention and Reduction of Use of Tobacco Products and Their Harmful Influence on People’s Health” declares the priority of healthcare policy over the financial, tax and corporate interests of economic entities whose activity is connected with the tobacco industry and of participation of individuals and groups of citizens whose activity is not connected to the tobacco industry in the actions taken to prevent and reduce the consumption of tobacco products and their harmful influence on the public health. However, this standard remains largely declarative, since public authorities do not organize any specific actions to raise awareness about tobacco industry interference with the state policy[4].

In August 2017 the Government officially adopted “The strategy to counteract illicit tobacco trade”. The strategy was developed in line with FCTC provisions. For example, it urges to counteract to any efforts by the tobacco industry to undermine or subvert strategies to combat illicit trade in tobacco products. The strategy declares that tracking and tracing system shall not be performed by or delegated to the tobacco industry. The strategy mentions that it should be further developed with participation of NGO not connected with tobacco industry. However, the Strategy remains rather declarative document as it was not supported by real actions[5].

The government accepts, supports or endorses policies or legislation drafted by or in collaboration with the tobacco industry. (Rec 3.4)

In 2015 Members of the Parliament MPs Hennadiy Kryvosheya, Borys Kozyr and Vitalii Stashuk registered a draft law 2430-1 “Amendments to certain Laws of Ukraine regarding the fulfillment of Ukraine’s obligations under the Association Agreement between Ukraine and the European Union, the European Atomic Energy Community and their Member States (concerning the production, presentation and sale of tobacco products, their advertising and sponsorship)”. This bill is based on the cancelled Directive 2001/37/EU that has very weak tobacco control measures[6] and has been used as a tactic to block (by being an alternative draft law to draft law 2820 the passage of the more effective draft law on tobacco control 2820, which complies with the new Directive 2014/40/EU. Draft law 2820 “On amendments to some laws of Ukraine on public health protection against harmful effects of tobacco” has been registered in 2015 by 4 MPs who belong to the Parliament Committee on Healthcare – MPs Olha Bohomolets, Oleh Musii, Oksana Korchynska, Iryna Sysoienkoand and 3 MPS who has been supporting tobacco control measures in Ukraine in the past – Hanna Hopko, Pavlo Unhurian, Ihor Lutsenko[7].

Draft law 2430-1 was assigned to the Parliament Committee on Tax and Customs and the draft law 2820 was assigned to the Committee on Healthcare. This situation created obstacles for the draft law 2820 to be considered in the 1st reading.

The main tobacco control law 2899 has been always a primer responsibility of the Committee on Healthcare not the Committee on Tax and Customs.

In 2017 MPs Nina Yuzhanina, Hennadiy Kryvosheia, Yuriy Vozniuk,  Oleksandr Kirsh, Olena Masorina, Myhailo Kobtsev, Roman Zastavnyi, Oleh Kryshyn, Roman Matsola, Andriy Shynkovysh, Maksym Kuriachyi, Andriy Antonyshchak, Leonid Kozachenko registered draft law 2430-d “Оn Amendments of Certain Legislative Acts of Ukraine on Improving Regulation in the Sphere of Production, Circulation, Prohibition of Advertising and Sponsorship of Tobacco Products, Electronic Cigarettes and Herbal Products for Smoking” based on the draft laws 2430-1 and 2820. This bill was presented as a “consensus” because it has some of the provisions of the EU Tobacco Product Directive 2014/40/EU except the provision on pictorial health warnings[8].

Several MPs authors of the draft law 2430-d – Nina Yuzhanina, Yuriy Vozniuk, Oleksandr Kirsh, Mykhailo Kobtsev, Roman Zastavnyi, Oleh Kryshyn, Maksym Kuriachyi, Andriy Antonyshchak are the Members of the Parliament Committee on Tax and Customs[9] .

Registration of draft law 2430-d created even more obstacles for adoption of the tobacco control bill 2820.

MP Nina Yuzhanina – the Head of the Committee of the Verkhovna Rada of Ukraine on Taxation and Customs Policy. MP Nina Yuzhanina is the first author of the draft law 2430-d that is used to block the 1st reading of the draft law 2820 that complies with WHO Framework Convention on Tobacco Control and the Directive 2014/40/EU. She initiated the working group on the development of a new draft law 2430-d based on the draft laws 2820 and 2430-1. The draft law 2430-d was developed without participation of the MPs from the Healthcare Committee and weakened the anti-tobacco norms that were proposed by the draft law 2820. In particular, the regulation regarding packaging and labeling changes for tobacco products.  She also advocated the lower excise tax rates on tobacco products in 2015-2016. Some of the adopted excise rates were lower than those proposed by the government, while the adopted rates were still high (specific rates were increased by 40% in 2016, 40% in 2017, 30% in 2018)[10].

Another MP – Hennadiy Kryvosheia is the co-author of the draft law 2430-d and is the main author of the draft law 2430-1. He is the initiator of the draft law 3788 that proposes to impose unrealistic regulations that are difficult to implement regarding the prohibition of smoking while closer than 20 meters from public places, so that compliance with the anti-tobacco legislation would be neglected. He is a co-author of the draft law 4507 that is aimed, among other provisions, to allow the smoking of electronic cigarettes in restaurants[11].    

MP Myhailo Kobtsev is a co-author of the bill 2430-d and a member of the Committee Tax and Customs. His daughter previously worked in the tobacco company “Philip Morris Sales and Distribution”. In 2016, as the Head of the Sub-committee on excise law and legislative regulation of spirits, alcohol and tobacco market, he lobbied the lower excise tax rates on tobacco. He also lobbied the Cabinet of Ministers to develop “coordinated” vision that would be represented on the Conference of Parties of the WHO Framework Convention on Tobacco Control parties. He asked the members of the Committee on Public Health to transfer all the public healthcare draft laws to the Committee on Taxation and Customs Policy[12]  

Another co-author of the bill 2430-d is MP Leonid Kozachenko a Member of the Committee of the Verkhovna Rada of Ukraine on Agrarian Policy and Land Relations. His assistant, Valentyna Khomenko, is the head of “Ukrtiutiun” Ukrainian Association of Tobacco Manufacturers. She opposes tobacco control regulations. In the beginning of 2014, he sent a letter to the Prime Minister of Ukraine, Arseniy Yatseniuk, asking to cancel the increase in an excise tax for alcohol and tobacco products[13].

In 2015 Members of the Parliament MPs Hennadiy Kryvosheya, Borys Kozyr and Vitalii Stashuk registered a draft law 2430-1 “Amendments to certain Laws of Ukraine regarding the fulfillment of Ukraine’s obligations under the Association Agreement between Ukraine and the European Union, the European Atomic Energy Community and their Member States (concerning the production, presentation and sale of tobacco products, their advertising and sponsorship)”. This bill is based on the cancelled Directive 2001/37/EU that has very weak tobacco control measures[14] and has been used as a tactic to block (by being an alternative draft law to draft law 2820 the passage of the more effective draft law on tobacco control 2820, which complies with the new Directive 2014/40/EU. Draft law 2820 “On amendments to some laws of Ukraine on public health protection against harmful effects of tobacco” has been registered in 2015 by 4 MPs who belong to the Parliament Committee on Healthcare – MPs Olha Bohomolets, Oleh Musii, Oksana Korchynska, Iryna Sysoienkoand and 3 MPS who has been supporting tobacco control measures in Ukraine in the past – Hanna Hopko, Pavlo Unhurian, Ihor Lutsenko[15].

Draft law 2430-1 was assigned to the Parliament Committee on Tax and Customs and the draft law 2820 was assigned to the Committee on Healthcare. This situation created obstacles for the draft law 2820 to be considered in the 1st reading.

The main tobacco control law 2899 has been always a primer responsibility of the Committee on Healthcare not the Committee on Tax and Customs.

In 2017 MPs Nina Yuzhanina, Hennadiy Kryvosheia, Yuriy Vozniuk,  Oleksandr Kirsh, Olena Masorina, Myhailo Kobtsev, Roman Zastavnyi, Oleh Kryshyn, Roman Matsola, Andriy Shynkovysh, Maksym Kuriachyi, Andriy Antonyshchak, Leonid Kozachenko registered draft law 2430-d “Оn Amendments of Certain Legislative Acts of Ukraine on Improving Regulation in the Sphere of Production, Circulation, Prohibition of Advertising and Sponsorship of Tobacco Products, Electronic Cigarettes and Herbal Products for Smoking” based on the draft laws 2430-1 and 2820. This bill was presented as a “consensus” because it has some of the provisions of the EU Tobacco Product Directive 2014/40/EU except the provision on pictorial health warnings[16].

Several MPs authors of the draft law 2430-d – Nina Yuzhanina, Yuriy Vozniuk, Oleksandr Kirsh, Mykhailo Kobtsev, Roman Zastavnyi, Oleh Kryshyn, Maksym Kuriachyi, Andriy Antonyshchak are the Members of the Parliament Committee on Tax and Customs[17].

Registration of draft law 2430-d created even more obstacles for adoption of the tobacco control bill 2820.

MP Nina Yuzhanina – the Head of the Committee of the Verkhovna Rada of Ukraine on Taxation and Customs Policy. MP Nina Yuzhanina is the first author of the draft law 2430-d that is used to block the 1st reading of the draft law 2820 that complies with WHO Framework Convention on Tobacco Control and the Directive 2014/40/EU. She initiated the working group on the development of a new draft law 2430-d based on the draft laws 2820 and 2430-1. The draft law 2430-d was developed without participation of the MPs from the Healthcare Committee and weakened the anti-tobacco norms that were proposed by the draft law 2820. In particular, the regulation regarding packaging and labeling changes for tobacco products.  She also advocated the lower excise tax rates on tobacco products in 2015-2016. Some of the adopted excise rates were lower than those proposed by the government, while the adopted rates were still high (specific rates were increased by 40% in 2016, 40% in 2017, 30% in 2018)[18].

Another MP – Hennadiy Kryvosheia is the co-author of the draft law 2430-d and is the main author of the draft law 2430-1. He is the initiator of the draft law 3788 that proposes to impose unrealistic regulations that are difficult to implement regarding the prohibition of smoking while closer than 20 meters from public places, so that compliance with the anti-tobacco legislation would be neglected. He is a co-author of the draft law 4507 that is aimed, among other provisions, to allow the smoking of electronic cigarettes in restaurants[19].    

MP Myhailo Kobtsev is a co-author of the bill 2430-d and a member of the Committee Tax and Customs. His daughter previously worked in the tobacco company “Philip Morris Sales and Distribution”. In 2016, as the Head of the Sub-committee on excise law and legislative regulation of spirits, alcohol and tobacco market, he lobbied the lower excise tax rates on tobacco. He also lobbied the Cabinet of Ministers to develop “coordinated” vision that would be represented on the Conference of Parties of the WHO Framework Convention on Tobacco Control parties. He asked the members of the Committee on Public Health to transfer all the public healthcare draft laws to the Committee on Taxation and Customs Policy[20].  

Another co-author of the bill 2430-d is MP Leonid Kozachenko a Member of the Committee of the Verkhovna Rada of Ukraine on Agrarian Policy and Land Relations. His assistant, Valentyna Khomenko, is the head of “Ukrtiutiun” Ukrainian Association of Tobacco Manufacturers. She opposes tobacco control regulations. In the beginning of 2014, he sent a letter to the Prime Minister of Ukraine, Arseniy Yatseniuk, asking to cancel the increase in an excise tax for alcohol and tobacco products[21].

The industry lobby in the parliament effectively blocks tobacco control legislation (except tobacco taxation). On the other hand, tobacco lobby is not able or is not interested in passing the weaker version of tobacco control laws. The industry-sponsored bill 2430-d is not adopted and most likely will not be passed. However, the passage of effective tobacco control bills 2820 and 4030a is has been blocked since 2015. 

In 2017 MP and Member of Committee of the Verkhovna Rada of Ukraine on Taxation and Customs Policy Andriy Antonyshchak and several other MPs from different political fractions Yurynets, Dobrodomov, Sylantiev, Batenko, Dubnevych, Lapin, Kit, Shurma, Ostrikova, Vasiunyk, Petiovka, Liushniak, Osukhovskyi, Horvat registered a draft law №6683-1 “On Amendments to the Tax Code of Ukraine on the Specifics of Taxation of Tobacco Products”. This draft law proposed to increase ad valorem excise rate on tobacco products, while keeping the specific rate rather low. Lviv tobacco factory is interested in higher ad valorem excise because it produces cheap cigarettes. Three big transnational tobacco companies (PMI, JTI, BAT) support only specific excise rate increase. The draft law sponsored by Lviv factory was not eventually adopted[22]. According to comments that MP Andriy Antonyshchak gave to journalist this bill was drafted by the national tobacco producers, particularly Lviv Tobacco Factory[23].

A draft law “On Amendments to Article 221 of the Tax Code of Ukraine regarding the Specifics of Taxation of Tobacco Products” (introduction of minimum retail prices) was developed by the working group in which the TI members also participated[24]. According to representative of the Imperial Tobacco this bill was drafted by the tobacco industry, then MoF accepted this policy proposal and registered a bill[25]. This draft law was lobbied by 3 companies that produce more expensive brands PMI, BAT, JTI. Imperial Tobacco and Lviv Tobacco Factory opposed this draft law because they produce cheaper brands and this bill would reduce their profit. This draft law was not adopted as of April 12 2019.

The Cabinet of Ministers approved a draft bill on ratification of the Protocol on March 1, 2017.[26] In 2017 the MoH submitted a draft of the bill to the President Administration because only the President can register a bill on ratification of the International Treaty and sent it to the Parliament for the 1st reading. However, the President Administration returned the draft bill two times due to “some technical issues[27]. This draft bill is not yet registered so far.

The government allows/invites the tobacco industry to sit in government interagency/ multi-sectorial committee/ advisory group body that sets public health policy. (Rec 4.8)

The law doesn’t prohibit government to interact with the tobacco industry. The Article 4. of the Law № 2899 “On Measures for the Prevention and Reduction of the Use of Tobacco Products and their Harmful Impact on the Health of the Population” includes the following provisions:

participation of physical persons, associations of citizens, whose activities are not associated with the tobacco industry, in measures for the prevention and reduction of the use of tobacco products and their harmful impact on the health of the population;

priority of the policy in the health sphere in comparison with the financial, tax and corporate interests of entities whose activities are related to the tobacco industry[28].

However, the Article 4 of the Law does not include any enforcement mechanism or fines for violation therefore it’s not properly enforced.

In 2018 Ministry of Finance formed a working group to work/draw up a draft law “On Amendments to Article 221 of the Tax Code of Ukraine regarding the Specifics of Taxation of Tobacco Products” (introduction of minimum retail prices). The tobacco industry representatives were included in this working group[29].  This draft law is not adopted as of April 12 2019.

In 2017 – 2018 “Ukrtiutiun” Ukrainian Association of Tobacco Manufacturers was member of the Civil Councils established in the Ministry of Finance, Ministry of Economic Development and Trade, State Fiscal service, Ministry of Agrarian Policy, State Regulatory Service, Committee on Tax and Customs, is a Member of Council of Entrepreneurs of the Cabinet of Ministers[30].  

The government nominates or allows representatives from the tobacco industry (including State-owned) in the delegation to the COP or other subsidiary bodies or accepts their sponsorship for delegates. (i.e. COP 4 & 5, INB 4 5, WG)[31] (Rec 4.9 & 8.3)

The Government did not nominate or allow the representatives from the tobacco industry in the delegation to the COP or other subsidiary bodies[32].

At COP-5 delegation of Ukraine included Mrs. Zaitseva[33] from the Ministry of Economics. During COP-5 she made the statement supporting tobacco industry position[34].

[1] The term “government” refers to any public official whether or not acting within the scope of authority as long as cloaked with such authority or holding out to another as having such authority

[2] The term, “tobacco industry’ includes those representing its interests or working to further its interests, including the State-owned tobacco industry.

[3] “Offer of assistance” may include draft legislation, technical input, recommendations, oversees study tour

[4] Law of Ukraine on Measures of Prevention and Reduction of Use of Tobacco Products and Their Harmful Influence on People’s Health https://zakon.rada.gov.ua/laws/show/2899-15. April 8 2019.

[5] On Approval of the Strategy for Combating Illicit Manufacturing and Trafficking in Tobacco Products for the period up to 2021. Cabinet of Ministers of Ukraine. http://www.kmu.gov.ua/control/uk/cardnpd?docid=250225276. April 16.

[6] Draft law “On amendments to certain legislative acts of Ukraine regarding the improvement of regulation in the sphere of production, circulation, prohibition of advertising and sponsorship of tobacco products, electronic cigarettes and herbal products for smoking.” Verkhovna Rada of Ukraine. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=54658. May 2 2019.

[7] Draft law 2820 “On amendments to some laws of Ukraine on public health protection against harmful effects of tobacco”. Verkhovna Rada of Ukraine.   http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=55081 May 2 2019.

[8] Draft law 2430-d “Оn Amendments of Certain Legislative Acts of Ukraine on Improving Regulation in the Sphere of Production, Circulation, Prohibition of Advertising and Sponsorship of Tobacco Products, Electronic Cigarettes and Herbal Products for Smoking.” Verkhovna Rada of Ukraine. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_2?pf3516=2430-%D0%B4&skl=9. May 2 2019.

[9] Members of the Committee. Parliament Committee on Tax and Customs. http://kompmp.rada.gov.ua/news/Pro_kom/zag_info/sklad_kom/72691.html. May 2 2019.

[10] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[11] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[12] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[13] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[14] Draft law “On amendments to certain legislative acts of Ukraine regarding the improvement of regulation in the sphere of production, circulation, prohibition of advertising and sponsorship of tobacco products, electronic cigarettes and herbal products for smoking.” Verkhovna Rada of Ukraine. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=54658. May 2 2019.

[15] Draft law 2820 “On amendments to some laws of Ukraine on public health protection against harmful effects of tobacco”. Verkhovna Rada of Ukraine.   http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=55081 May 2 2019.

[16] Draft law 2430-d “Оn Amendments of Certain Legislative Acts of Ukraine on Improving Regulation in the Sphere of Production, Circulation, Prohibition of Advertising and Sponsorship of Tobacco Products, Electronic Cigarettes and Herbal Products for Smoking.” Verkhovna Rada of Ukraine. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_2?pf3516=2430-%D0%B4&skl=9. May 2 2019.

[17] Members of the Committee. Parliament Committee on Tax and Customs. http://kompmp.rada.gov.ua/news/Pro_kom/zag_info/sklad_kom/72691.html. May 2 2019.

[18] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[19] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[20] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[21] Transparency International Ukraine https://ti-ukraine.org/en/news/tobacco-manufacturers-lobby-the-nasirov-group-interests-in-the-committee-on-taxation-research-by-ti-ukraine/. April 8 2019.

[22] Verkhovna Rada of Ukraine. draft law №6683-1 On Amendments to the Tax Code of Ukraine on the Specifics of Taxation of Tobacco Product. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62365. April 8 2019.

[23] Comments.ua. MP Antonyschak said that Vynnykivska tobacco factory supports the entire city budget.  599275-nardep-antonishchak-zayavil.html. April 8 2019.

[24] Excise excitation: how the Cabinet intervened in the redistribution of the tobacco market. Newspaper Economica. http://economica.com.ua/kabinet-ministrov-ukrainy/article/77716398.html

[25] The Ministry of Finance refuses to explain why prepares to increase prices for cheap cigarettes. Obozrevatel. https://www.obozrevatel.com/ukr/economics/fea/minfin-vidmovlyaetsya-poyasniti-dlya-chogo-gotue-pidvischennya-tsin-na-deshevi-sigareti.htm. April 14 2019.

[26] Ukraine is ready to accede to the Protocol to eliminate illicit trade in tobacco products. Cabinet of Ministers. https://www.kmu.gov.ua/ua/news/249781408. April 25 2019.

[27] The Round Table was held at the Committee on Foreign Affairs: “Ratification of the Protocol to Eliminate Illicit Trade in Tobacco Products – Strengthening International Cooperation between Ukraine and the EU in the Area of Combating Illicit Manufacturing and Trafficking of Tobacco Products”. Verkhovna Rada of Ukraine. https://rada.gov.ua/fsview/154054.html. April 25 2019.

[28] Verkhovna Rada of Ukraine. Law № 2899 On Measures for the Prevention and Reduction of the Use of Tobacco Products and their Harmful Impact on the Health of the Population. https://zakon.rada.gov.ua/laws/show/2899-15.

[29] Excise excitation: how the Cabinet intervened in the redistribution of the tobacco market. Newspaper Economica. http://economica.com.ua/kabinet-ministrov-ukrainy/article/77716398.html

[30] State Regulatory Service. http://www.drs.gov.ua/wp-content/uploads/2017/10/Homenko-V.O.-Ukrayinska-asotsiatsiya-vyrobnykiv-tyutyunovyh-vyrobiv.pdf

[31] Please annex a list since 2009 so that the respondent can quantify the frequency,  http://www.who.int/fctc/cop/en/

[32] Conference of the Parties. List of Participants. WHO FCTC. April 8 2019. https://www.who.int/fctc/cop/sessions/cop8/LOP_Final.pdf?ua=1

[33] Conference of the Parties 5. List of Participants. WHO FCTC.  http://apps.who.int/gb/fctc/PDF/cop5/FCTC_COP5_DIV1_Rev1.pdf. April 20 2019.

[34] Civil society named tobacco and alcohol lobbyists and presented anti-ward “Golden Spit”. Ukrainian Center for tobacco control. http://tobaccocontrol.org.ua/news/gromads-kist-vidznachila-tiutiunovikh-ta-alkoghol-nikh-lobistiv-antipriemiieiu-zolota-kosa-2012?fbclid=IwAR3WcsYHcRhN_E4rmHjLOoPKJqAMxHoVd1jp-MfYkIRDShu_6TbehJG5g9c.April 20 2019.