The economic mechanism of functioning of the market of tobacco and tobacco items in Ukraine is object of research. The research objective consists in working out of offers on improvement of the economic mechanism of functioning of the specific market of tobacco in Ukraine, in definition of ways of increase of efficiency of a tobacco subcomplex with allowance for existing contradictions between subjects of production and consumption of tobacco items. Research methods: historical, is abstract-logic, the analysis and synthesis, an induction and deduction, a hypothesis, monographic, a method of calculation of the minimum and equivalent prices, modelling, comparison; average, absolute and relative sizes; graphic, tabular, index, regresses, balance, questioning, it is settlement-constructive, forecasting. Theoretical and practical results: the current state of affairs of market of tobacco is analysed in Ukraine with consideration of quantitative and high-quality indexes of suggestion, demand, price situation and government control of market, economic efficiency of tobacco subcomplex of Ukraine on the whole and in the cut of basic subjects. Effective government control of forming of economic mechanism of functioning of market of tobacco is grounded in Ukraine, backlogs of increase of economic efficiency of production of tobacco and all subjects of market are certain, the prognosis of the state of affairs of market of tobacco to 2030 year. Scientific novelty: consists in a substantiation and working out of theoretical, methodological and practical positions of the economic mechanism of functioning of the market of tobacco in Ukraine. Introduction degree: workings out were used at drawing up of the concept of development of agrarian and industrial complex in Autonomous republic Crimea till 2015, Open Society "Crimeatobacco", the Zakarpatye institute of agroindustrial production UААS, the Ministry of agrarian policy of Ukraine. Use of results of research will promote improvement of the economic mechanism of functioning of the market of tobacco in Ukraine, to increase of economic efficiency of a tobacco subcomplex of Ukraine, especially АР Crimea, with allowance for world tendencies and antitobacco movement. Sphere, use branch: the enterprises of tobacco subcomplex, legislative and practical activities of state structures of management.
