Kazakhstan and EAEU Countries Step Up Fight Against “Gray Imports” and Cigarette Smuggling, деп хабарлайды DKNews.kz.
Representatives of state authorities from Kazakhstan and Kyrgyzstan, the Eurasian Economic Commission (EEC), and the legal tobacco industry discussed the issue of gray-market imports and cigarette smuggling into the countries of the Eurasian Economic Union (EAEU). The meeting was held in the Almaty Region at the production facility of JTI, Kazakhstan’s largest tobacco manufacturer.
According to data presented during the discussions, up to 10 billion cigarettes are smuggled into the EAEU annually, causing significant losses to member states’ budgets. In Kazakhstan, tax revenue losses due to the illegal tobacco trade could exceed 36 billion tenge in 2025.
Timur Zharkinov, Deputy Chairman of the Board of the Atameken National Chamber of Entrepreneurs, noted that the core of the problem lies in the workings of the EAEU single market and the absence of internal customs borders:
“Once goods enter any EAEU country, they can move freely to the others, and this is the key issue. Our statistics show that Kyrgyzstan has become the weak link—there are established schemes for smuggling illegal goods through markets in Iran, Turkmenistan, and Uzbekistan into Kyrgyzstan.
From there, the goods are distributed further. Once they enter any EAEU member state, it becomes extremely difficult to detect and stop the smuggling. That is why we believe the issue must be addressed at the Union’s external perimeter,” explained Timur Zharkinov.
In this regard, the meeting participants discussed the need to strengthen controls at the EAEU’s external border and improve mechanisms to counter so-called “false transit” schemes. Kuat Rakhimov, Director of the Department of Customs Legislation and Law Enforcement Practice at the Eurasian Economic Commission, stated that the EEC is currently developing a set of measures to increase the transparency of goods movement within the Union.
“Together with the EAEU member states, we are now working on measures to combat false transit, including through the introduction of navigation seals and tighter controls on the movement of sensitive goods. These tools will help track the movement of products and identify violations in a timely manner,” said Kuat Rakhimov.
Eugenijus Cikockas, JTI’s Regional Director for Illicit Trade Prevention, provided specific details:
"Cigarette smuggling is an international crime. Illegal goods on this scale can only enter the market through well-organized smuggling channels, and it is up to law enforcement to uncover these supply chains. However, as market participants, we can help them identify the sources. For instance, 75% of smuggled cigarettes in Kyrgyzstan and 85% in Kazakhstan originate from the United Arab Emirates."
The meeting even pinpointed the production site of the smuggled cigarettes: the Jebel Ali Free Zone in the UAE. However, experts stressed that this is not a reason to blame the Emirates. "The cigarettes are produced legally in a special economic zone within the UAE and are exported legally from the country. The problem is that later these legal goods are turned into contraband through forged documents and other means,” said Timur Zharkinov.
According to Eugenijus Cikockas, combating the gray market requires international cooperation and dialogue between governments and businesses. The manufacturer is ready to share recommendations with authorities but needs to be heard.
Incidentally, Kuat Rakhimov emphasized that the information provided by JTI representatives on illegal tobacco trade would be analyzed and forwarded to all relevant regulatory agencies. “Naturally, as a manufacturer, JTI has a strong vested interest in combating the illicit tobacco trade,” he added.
Speakers cited Uzbekistan as a success story, where the illicit market share fell from 19% at the beginning of 2024 to 10.1% by the year’s end. This was achieved through a series of measures, including stricter border controls on transit shipments and harsher penalties for smuggling compared to those currently in place in Kazakhstan.
Participants emphasized that coordinated efforts by government agencies, international cooperation and data exchange among EAEU countries, along with active business engagement, are key to reducing the scale of illegal tobacco trade in the region.
