EBA representatives discuss shadow trade with the ESBU and Verkhovna Rada

15/ 09/ 2025

Representatives of the European Business Association, Natalia Artemchuk and Tetiana Shyrochenko, participated in the conference “De-shadowing Retail Trade and the Service Sector: The Most Vulnerable Industries”, organised by the Ukrainian Business Council in cooperation with ACC and EBA. The conference addressed the latest research findings on the share of shadow trade in excisable goods, food products, electronics, telecom services, security services, and more. The event was attended by Danylo Hetmantsev, Chair of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy; Deputy Chair Yaroslav Zhelezniak; Oleksandr Tsyvinskyi, Head of the ESBU; and Mykola Yakovenko, Judge of the Supreme Court of Ukraine. Representatives of law-abiding businesses confirmed their readiness to cooperate with regulatory authorities to reduce shadow trade. Telecommunications sector representatives shared positive outcomes of state policies regulating the internet service provider market. Retail sector participants emphasised the importance of ensuring equal business opportunities and highlighted significant differences in tax burdens across different retail chains. Participants also drew attention to the issue of large retail and restaurant chains circumventing regulations by using sole proprietors (FOP), informal employment, or unofficial wage payments, which creates unequal competition and results in tax revenue losses for the state. The conference demonstrated the scale of shadow trade in key sectors of Ukraine and the need for a comprehensive approach to tackle this phenomenon. The EBA calls for systematic, daily work by law enforcement agencies, in particular the ESBU, as well as the State Customs Service and the State Tax Service of Ukraine, to ensure fair and equal conditions for doing business.

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The event was attended by Danylo Hetmantsev, Chair of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy; Deputy Chair Yaroslav Zhelezniak; Oleksandr Tsyvinskyi, Head of the ESBU; and Mykola Yakovenko, Judge of the Supreme Court of Ukraine. Representatives of law-abiding businesses confirmed their readiness to cooperate with regulatory authorities to reduce shadow trade.

Telecommunications sector representatives shared positive outcomes of state policies regulating the internet service provider market. Retail sector participants emphasised the importance of ensuring equal business opportunities and highlighted significant differences in tax burdens across different retail chains. Participants also drew attention to the issue of large retail and restaurant chains circumventing regulations by using sole proprietors (FOP), informal employment, or unofficial wage payments, which creates unequal competition and results in tax revenue losses for the state.

The conference demonstrated the scale of shadow trade in key sectors of Ukraine and the need for a comprehensive approach to tackle this phenomenon.

The EBA calls for systematic, daily work by law enforcement agencies, in particular the ESBU, as well as the State Customs Service and the State Tax Service of Ukraine, to ensure fair and equal conditions for doing business.