iPhone Smuggling in Ukraine Reaches Record 80%

In the first quarter of 2025, Ukraine lost more than ₴1.8 billion (≈ $45.5 million) in unpaid taxes on Apple imports — a result of rampant smuggling that has evolved from a chronic issue into a systemic anomaly. The iPhone market was hit hardest: 80.9% of all devices activated on Ukrainian networks were brought into the country without any customs clearance.

According to official statistics, only 47,869 iPhones were legally imported during this period, while 250,166 new devices were registered by mobile operators. That means over 202,000 smartphones were smuggled in without paying VAT or import duties.

Zero Enforcement

Even more striking is the data from Ukraine’s State Customs Service. During the same period, customs officers detected only 107 Apple devices that were imported in violation of customs regulations — less than 0.02% of the total volume of smuggled goods.

Officially, the Department for Combating Smuggling and Customs Violations, led by Denys Raikov, is responsible for enforcement. Yet despite the scale of budgetary losses, there have been no public statements, internal audits, or disciplinary measures.

From “Yabko” to “Yabluka”

On March 25, 2025, State Tax Service chief Ruslan Kravchenko announced a large-scale operation: the discovery of two major retail networks distributing smuggled Apple products that, according to Kravchenko, had evaded over ₴286 million (≈ $7.24 million) in VAT across 160 retail locations.

However, the names of these networks were conspicuously omitted. Those familiar with the market, however, had no doubts: The first is “Yabko,” a Lviv-based retailer linked to business entities associated with Petro Dyminskyi. The second is “Yabluka,” owned by Zaporizhzhia businessman and local council member Artur Hatunok, who reportedly maintains close ties to the regional prosecutor’s office.

Both companies had already been the subject of media investigations into large-scale Apple smuggling — long before the Tax Service’s announcement. Yet they are not the root of the problem.

Why Target Retailers — but Not the Supply Chains?

The real question remains: Why haven’t any suppliers been named?

How are hundreds of thousands of Apple devices entering Ukraine in industrial volumes? Where are the shipping records? Where is border control?

While authorities publicly crack down on front-facing retail brands like Yabko and Yabluka, the majority of the market operates through the same schemes — using sole proprietorships (FOPs), fragmented shipments, falsified invoices, and so-called “postal imports” to evade detection.

In short: Some retailers are punished for smuggling — while others are allowed to continue under the same model, protected by years of institutional blind spots and deliberate inaction.

The Deafening Silence of Hetmantsev

Amid these revelations, the silence of Danylo Hetmantsev, head of the Verkhovna Rada’s Finance Committee, is particularly striking. Despite his daily calls for economic de-shadowing, there have been no legislative initiatives, no inquiries, and no investigations from his office — even as Apple-related tax losses alone exceed ₴1.8 billion quarterly.

“Either Hetmantsev is unaware of the issue — or he knows exactly what it is and chooses to remain silent,” one economic analyst noted.

Losses and Reputation

Apple smuggling is not just a budgetary issue. At a time when Ukraine depends on foreign aid and publicly aspires to European integration, the systemic inaction of customs, tax authorities, and senior policymakers is damaging the most vital asset the country has — the trust of its Western partners.