This study investigates the volume of illicit tobacco trade in Ukraine and focuses on traditional cigarettes and heated tobacco products. Traditionally, Ukraine is the leading origin for illicit cigarettes trafficked into the European Union (EU) market. In 2018 the illicit outflow from Ukraine to the EU was estimated at more than 4 billion cigarettes. In 2017 the Parliament of Ukraine approved the so-called “7-year plan” which affected excise taxation by the one-time increasing of the specific excise tax rate for cigarettes in 2018, followed by a gradual 20% increase every year from 2019 to 2025. Moreover, starting from January 1, 2021, the excise tax system for tobacco products included new taxation categories for heated tobacco units (HTU). These reforms have shifted a public discussion on the illicit trade from outflows to the EU to counterfeit, so-called “duty-free” production and inflows from the countries which have lower tobacco taxes. To evaluate the share of illicit tobacco trade, the survey of tobacco consumers was conducted in April 2021. Preliminary results show that the illicit market of manufactured cigarettes is 15.4% of sales, while in the case of heated tobacco products it is approximately 3.5%.