Latvian authorities dismantle massive illegal cigarette factory

Last week, the Latvian State Police (Valsts policija), in cooperation with the Latvian State Border Guard (Valsts robežsardze), carried out a large-scale operation to dismantle a criminal network involved in illegal tobacco production. Officers discovered a massive illegal cigarette manufacturing site, which was fully equipped with production machinery and raw materials. The operation led to the detention of 32 people and the seizure of nearly 300 million cigarettes and approximately 47 tonnes of shredded tobacco leaves. If these cigarettes had entered the Latvian market, the estimated financial loss to the state would have exceeded EUR 75 million.

Searches were conducted simultaneously at multiple locations. The State Police carried out 26 searches in Riga, discovering warehouses containing cigarettes and detaining 7 individuals, including 6 Latvian and 1 Russian national. Meanwhile, the State Border Guard carried out 8 searches in Ludza, Rēzekne and Daugavpils, detaining 25 Ukrainian nationals at the Ludza factory, where counterfeit cigarettes were being manufactured under well-known brand names.

Seizures by the State Police

• 164 million cigarettes without excise stamps, equivalent to 16 semi-trailer lorry loads
• 3 passenger cars and 3 cargo trucks used for criminal activities
• EUR 55 000 in cash
• Various technical equipment, including GPS signal jammers and detectors
• An unregistered firearm and ammunition

Seizures by the State Border Guard

• 132 million cigarettes without excise stamps, equivalent to 13 semi-trailer lorry loads
• Approximately 47 tons of shredded tobacco leaves, enough to produce 68 million cigarettes
• 4 cargo trucks with trailers and 1 cargo van used for criminal activities
• Counterfeit excise stamps
• An illegal cigarette factory in Ludza, equipped with production machinery and raw materials
• Warehouses containing raw materials for cigarette production in other locations

The investigation was supported by Europol, which provided analytical support to the authorities involved. Europol also organised operational meetings and provided remote support during the searches. The Lithuanian Customs Criminal Service (Muitinės kriminalinė tarnyba) also supported this investigation. Several criminal cases related to illegal tobacco production and money laundering have been initiated by Latvian authorities as a follow-up to the operation. Prior to the raids, several individuals linked to the network's criminal activities and involved in laundering illicit funds in Latvia were detained.
 
The extensive operation by Latvian authorities to dismantle the illegal cigarette factory has been documented in a comprehensive video: