The volume of the illegal electronics and household appliances market in Ukraine has doubled since the start of the full-scale invasion, reaching 25-30% in monetary terms, said CEO of the Foxtrot chain Oleksiy Zozulya.
The volume of the illegal electronics and household appliances market in Ukraine has doubled since the start of the full-scale invasion, reaching 25-30% in monetary terms, said CEO of the Foxtrot chain Oleksiy Zozulya.
This was reported by Interfax Ukraine, citing Zozula’s statements. According to him, due to temporary tax benefits introduced in the first months of the war, in particular the abolition of VAT and duties on the import of electronics, as well as a moratorium on business inspections, the volumes of the «gray» market have significantly increased.
This situation has led to a significant expansion of illegal trade in household appliances and gadgets not only in the online segment, but also in physical retail. According to experts, the share of the «gray» market now reaches 25-30% by value and about 10% by volume of products sold.
Overall, the projected decline in the official electronics and home appliances market in 2025 could exceed UAH 40 billion if the trend continues. This means that approximately every fourth product worth more than UAH 10,000 will be sold outside official channels. This category includes smartphones, TVs, coffee machines, large household appliances, and other popular devices.
Experts pay special attention to the Apple brand — the lion’s share of «gray» equipment of this manufacturer. According to the official distributor «ASBIS Ukraine», in the first quarter of 2025, Apple gadgets worth UAH 8.5 billion were smuggled, which is four times higher than the official import of UAH 2.2 billion. Because of this, the state budget loses about UAH 1.7 billion every quarter from non-payment of VAT.
The loss of these tax revenues creates additional pressure on the country’s budget, especially in the context of an increased tax burden on legal businesses. In addition, the spread of the «gray» market leads to unfair competition, which puts official sellers at a disadvantage.
Experts note that to reduce the share of the illegal market, it is necessary to strengthen state control, return mandatory fiscalization of sales, and effectively combat fraud in the import and sale of equipment. Without comprehensive measures, the situation can only worsen, which will negatively affect the country’s economy.
Let us remind you that our feed also featured news about how in a month and a half the electronics chain «Techno Yizhak» plans to split into two separate brands and change its identity.
