Ukraine’s National Agency on Corruption Prevention has added the tobacco companies Philip Morris International and Japan Tobacco International to the list of international sponsors of war. The press service of the NACP posted the information on Telegram.
These companies continue working on the Russian market, contributing to the budget of the aggressor country. Moreover, their revenues have increased during Russia’s full-fledged war against Ukraine.
How does Philip Morris International work in Russia?
Philip Morris reported that the company’s revenue on the Russian market increased by 45% in 2022 as compared to 2021 to amount to 140.3 billion rubles. Its net profit was 48.2 billion rubles, which is 45% more than in 2021.
The company is confident in the economic potential of the aggressor country since it’s implementing a large-scale investment program in Russia. Since 2017, Philip Morris has invested over 14 billion rubles to localize the production of tobacco sticks for IQOS at a factory in the Leningrad region.
How does Japan Tobacco International work in Russia?
Japan Tobacco International is a leader in the Russian tobacco industry, holding 34.9% of the market. The Russian market generated around $2 billion for the company in 2022, which is approximately 11% of its consolidated annual revenue.
Representatives of both countries asserted that they planned to close their businesses in Russia, halting new investment and marketing activity. However, they have continued manufacturing and distributing their products on the Russian market during the 1.5 years of the full-scale war.
Philip Morris International and Japan Tobacco International also work in Ukraine
Meanwhile, both companies continue to work in the Ukrainian market. Philip Morris International and Japan Tobacco International are ranked among the top five Ukrainian employers by Forbes.
In the Lviv region, Philip Morris International plans to build a new tobacco factory valued at approximately $30 million. The factory is expected to create more than 250 jobs.
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