Cigarette smuggling into the UK: £100 million in economic losses and the role of Mr. Ara Davoyan

Law enforcement agencies continue an intensified investigation into one of the largest criminal networks engaged in the illegal production and supply of cigarettes to the United Kingdom and European Union countries.

According to the investigation, the criminal organization is led by Ara Davoyan, a Lithuanian citizen of Armenian origin, who has been a key figure in the underground tobacco business for many years. Over the past decade, he managed to establish and maintain a large-scale network for the production and smuggling of tobacco products, causing annual damage to the British economy amounting to hundreds of millions of pounds. 

However, since 2019, international law enforcement operations have resulted in the arrests of his closest associates, the exposure of major underground factories in the UK and the EU, and the seizure of illegal cigarettes in unprecedented quantities. 

Arrest of Elmar Laizans – Davoyan’s closest associate

Elmar Laizans

A major blow to the criminal organization was delivered in the summer of 2024 when Latvian law enforcement agencies arrested Mr. Elmar Laizans, one of Ara Davoyan’s closest associates and long-time partners, who was responsible for the production and logistics of smuggled cigarettes within the EU. 

Laizans was charged with organizing illegal production, tax evasion, and money laundering. His testimony shed light on the workings of the criminal group and its deep connections to the British market. 

Dismantling of the largest underground cigarette factory in Europe 

In November 2024, Latvian law enforcement agencies conducted the largest operation in EU history to shut down an underground tobacco production site. Police confiscated 30,000 cases of counterfeit cigarettes and industrial equipment worth over €70 million. Investigations revealed that a significant portion of the production was intended for illegal distribution in the UK, where high excise taxes made smuggling particularly profitable. 

During the raid, 32 individuals—citizens of Ukraine, Latvia, and Russia—were arrested. Authorities are investigating possible connections between the criminal network and British distribution channels, where illegal cigarettes were sold at reduced prices, causing serious damage to the government’s excise tax system. 

Ara Davoyan

Ara Davoyan – organizer of the criminal network 

According to the investigation, Ara Davoyan is the primary organizer of the smuggling operation and the financier of illegal production. 

Davoyan left Latvia in advance and is currently believed to be hiding in the United Arab Emirates and Russia, periodically visiting Armenia. Law enforcement agencies are working on tracing his connections and criminal activities, including through Interpol. 

The investigation is also looking into Davoyan’s potential ties to corruption schemes and the elimination of competitors, including through violent means. Authorities are reviewing a murder case involving one of Davoyan’s former associates, which may lead to further criminal charges. 

Money laundering through Baltic Sotheby’s 

Investigative agencies have uncovered a widespread money-laundering scheme through the real estate market. A key figure in this scheme is Ilze Mazurenko, the owner of Baltic Sotheby’s, a major company specializing in exclusive real estate sales. Davoyan used her services to acquire properties under the names of proxies—his mother, sister, brother-in-law, and nephews.

Ilze Mazurenko

Through this scheme, millions of euros were converted into “clean” assets. Investigators report that Davoyan invested a significant portion of his smuggling proceeds into real estate in Latvia, Bulgaria, Russia, Armenia, and the UAE. In particular, a residential complex is currently under construction in Armenia, financed with proceeds from cigarette smuggling.

Alexander Golubev – Davoyan’s right-hand man in the UK

One of the key figures in the network is Mr. Alexander Golubev, a trusted associate of Ara Davoyan, responsible for the operational management of the criminal scheme in the UK. 

Alexander Golubev

Golubev managed the technical and organizational processes of counterfeit cigarette production and distribution, arranged the transportation of goods to the UK, and established connections with underground distributors. 

In 2019, Golubev was directly involved in organizing an underground factory in County Louth, Ireland, where a full-cycle production line for counterfeit cigarettes was set up. According to official estimates, the damage to the budget amounted to £25 million. Under his leadership, the factory operated at an industrial scale, supplying illegal cigarettes to markets in the UK and the EU. 

That same year, Golubev oversaw another factory—this time in Northern Ireland. During a special operation conducted by HMRC and British police, an underground factory hidden in a concrete bunker was discovered. The facility had a production capacity of up to one million cigarettes per day. Two Latvian nationals were arrested, but Golubev managed to evade capture and continued his activities. 

Golubev, originally from Latvia, recently obtained British citizenship to evade Latvian investigators. He also controlled underground factories in other EU countries, including an illegal production facility in Brilon, Germany, which was dismantled in 2023. 

Uncovering secret warehouses and future arrests 

A secret warehouse in Latvia holding 160 million cigarettes ready for shipment was discovered, as well as a recent incident involving a truck detained in Klaipeda on February 22, 2025, which contained 450,000 packs of illegal cigarettes—all linked to Golubev. According to investigators, he was responsible for the security of the secret warehouse and coordinated the attempt to move the hidden goods to minimize losses following mass arrests in Latvia.

Today, law enforcement agencies across multiple countries are actively investigating his activities, probing his ties to organized crime and his potential involvement in eliminating competitors. Despite his attempts to hide behind a British passport, increasing international attention on his role in the smuggling network has made him a top target of the investigation. 

Dmitriy T. – Davoyan’s cashier, hiding in Russia 

UK law enforcement agencies also suspect Latvian citizen Dmitriy T., who, according to the investigation, is a key figure in Davoyan’s financial operations. He serves as the organization’s cashier, handling the transfer of illicit proceeds from smuggling and their movement across the borders of the UK and the European Union. According to operational data, he is currently hiding in the Russian Federation. His full name has not yet been disclosed in the interest of the investigation. 

Joint efforts of law enforcement in the UK, Latvia, and Germany 

At present, law enforcement agencies continue coordinated actions to dismantle Davoyan’s criminal network. Large-scale arrests and interrogations of detained individuals have already provided new data on smuggling routes, financing schemes, and key individuals involved in this illegal business. 

Further arrests are expected as the investigation progresses, targeting individuals directly or indirectly involved in maintaining the network—from organizers and financiers to those responsible for logistics and sales of illegal products. 

If Davoyan and his associates are found guilty, they face long prison sentences for their years-long criminal activities that have caused significant damage to the economies of the United Kingdom and the European Union. 

The investigation continues, and international cooperation among law enforcement agencies remains a key element in dismantling this criminal network. 

Uncovered illegal tobacco production sites and warehouses linked to Davoyan’s criminal network 

• 2019, Ireland: In County Louth, police discovered an underground factory with a full-cycle production line where counterfeit cigarettes were being manufactured. The estimated budget loss was €25 million.

• 2019, United Kingdom: During an HMRC special operation in Northern Ireland, police found an underground factory hidden in a concrete bunker, producing up to 1 million cigarettes per day. Two Latvian nationals were arrested during the operation.

• 2023, Germany: Customs authorities dismantled an illegal factory in Brilon (North Rhine-Westphalia). As part of the operation, searches were conducted at approximately 20 locations, including warehouses and transportation hubs used for distributing illegal products across Europe. According to the investigation, the facility produced up to 10 million cigarettes per week. A total of 26 million cigarettes and production equipment were seized, and 13 individuals were arrested.