On September 25th in Chernivtsi, the National Police of Ukraine located and raided an illegal cigarette manufactory associated with former Ukrainian Minister of Infrastructure, ex-People’s Deputy from the political party “Narodnyi Front” Maksym Burbak.
According to local activists, the manufactory contained goods which amounted to a total of UAH 50 million (~1.5 million Euro). It is said that this cigarette manufactory belonging to Mr. Burbak has been illegally counterfeiting cigarettes for years with the primary further exports to European Union. Mr. Burbak did arrive to the location shortly after the raid took place, acting concerned and aggressive. Mr. Burbak even went so far as to threaten law enforcement officers with huge problems that he claimed to be able to ensue with his strong “coat-tails”. Mr. Burbak then succeeded in evading law enforcement in this case after making an emergency trip to Kiev, to meet with the minister of internal affairs, Mr. Avakov. After discussing the nature of the raid with this public official, wherein some amount of money was offered or some illegal deal discussed, the case was closed without eviction, and the manufactory returned to operating without a problem.
It should be noted that Mr. Burbak is already known as one of the shadiest businessmen amongst the Chernivtsi region, particularly in his engagement with various cargo transportations and as Chairman of the NGO “Interregional Agrarian Union”. In fact, in acting previously as People’s Deputy of Ukraine, Maksym Burbak appeared in two anti-corruption investigations concerning purchases at artificially high prices and a violation of financial control requirements.
As a political career in Kyiv did not allow Maksym Burbak to physically control cash flows on a daily basis, he began placing local associates in areas of his minacious activities, so that they could regularly replenish the treasury of “Narodnyi Front” to his liking.
These people have often remained off the public radar, as Mr. Burbak has carefully attempted to hide his association with them. One of these such associations is Oleksandr Yerimichuk, better known to the general Bukovynian community as “Slon” (Elephant). It is said that Yerimichuk controls the smuggling of consumer goods from China and Turkey, and accomplishes this feat by submitting a double package of documents. As soon as these goods then end up at the Bukovynian customs, they are temporarily converted into construction materials according to the instructions of forged documents. Since building materials are much cheaper in customs clearance, the budget receives less funds than it is due, and thus smuggled goods are imported for later sale in Ukraine. According to first-hand sources, the secret to Burbak’s success in this endeavor lies in the fact that loyalty between customs officers and Yerimichuk is personally ensured by the Head of Chernivtsi customs of the State Fiscal Service, Mykola Salahor, who also has his own financial interest in this area. As such, Yerimichuk’s corrupt activities remain protected even under the eyes of officials.
Despite all the corrupt schemes in which Maksym Burbak’s name appears, this figure continues his political activity under of patronage of his childhood friend and former prime minister Arseniy Yatsenyuk. For instance, in 2019 he ran for the Verkhovna Rada of the 9th convocation in district 204 (in the Chernivtsi region) as a non-partisan, self-nominated candidate. Though he was not elected, Maksym Burbak obviously continues to hold presence from within the political sphere.
On September 22nd of this year, three days before the raid of the cigarette manufactory, the political party in Chernivtsi, “Partiia Chernivchan” announced the lists of candidates nominated by the political to local councils in the Chernivtsi region. At this occasion, it was made known that Maksym Burbak, a People’s Deputy of the 7th and 8th convocations of the Verkhovna Rada, is now first on the list to run for the Chernivtsi Regional Council.
As a direct result of such criminals as Maksym Burbak, and his continued influence in the political sphere, Ukraine is one of the leaders in smuggling flows within the European Union.
For instance, KPMG Stella research shows that Ukraine is in the top 5 suppliers of contraband and counterfeit cigarettes in the EU. Statistics also indicate that in 2019, 2.4 billion cigarettes were supplied to the European Union from Ukraine, 1 in every 18 illegal cigarettes in the EU as a whole.
In addition to avoiding taxes—meaning the budgets do not receive revenues for the benefit of social services, schools, hospitals, pensions, and so on—smuggling can cause entire networks of unethical and dubious business to arise. And cigarettes are just the beginning:
“Illegal trade is one of the potential sources of financing for terrorism and separatism. Smuggling of tobacco products, as a rule, is carried out by criminal groups whose activities, among other things, are aimed at the flourishing of corruption and money laundering,” explains Christina Linichenko, Head of the FMCG Department of the European Business Association (EBA).
In this way, the illegality of smuggling cigarettes is not just something that causes headaches for legal Ukrainian manufacturers. Instead, this phenomenon devolves quickly into a matter of Ukraine’s national security, as well as contributes to Ukraine’s damaging reputation as one of the top suppliers of contraband and counterfeit goods to the European Union. Needless to say, when former minister and deputy Maksym Burbak is actively involved in such operations, it shames not only Ukraine but also a Ukrainian political system aiming for Euro-Integration. The case of Maksym Burbak is clear proof that even something seemingly as small as one illegal cigarette can ultimately lead not only to the political ascension of an amoral and unprincipled official, but can also disparage the reputation of an entire nation.
