Latvian authorities dismantle massive illegal cigarette factory

An enforcement operation in Latvia has taken down a large-scale illegal cigarette manufacturing facility with the seizure of a massive 300m cigarettes claiming to be well-known brands and 47 tonnes of shredded tobacco.

Police and customs in the EU member state made the discoveries during 26 searches in the Latvian capital Riga alongside operations in Ludza, Rēzekne and Daugavpils. According to Europol, which supported the crackdown, the cigarettes would have led to a financial loss to the state of €75m, (around $79m) if they had entered the market.

A recently published report estimated that more than 35bn illicit cigarettes were smoked in the EU last year, of which 12.7bn were counterfeit. The production and distribution of counterfeit cigarettes within EU borders is thought to be increasing, which may be a response to increased controls at the EU border and a lower risk of detection by customs, and criminal organisations are also focusing their activities on higher-taxed and higher-priced EU member states.

The operation led to the detention of 32 people, including 25 Ukrainian nationals, six Latvians, and a Russian. All the seized cigarettes were found with no excise tamps, with counterfeit stamps also intercepted during the raids along with production machinery and raw materials, an unregistered firearm and ammunition, and various technical equipment including GPS signal jammers and detectors.

A video of the factory filmed by law enforcement can be viewed below:

Several criminal cases related to illegal tobacco production and money laundering have been initiated by Latvian authorities as a follow-up to the operation, said Europol. Prior to the raids, several individuals linked to the network's criminal activities and involved in laundering illicit funds in Latvia were detained.