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Tobacco giants: only one company ceases operations in Russia

Two more reduced investments.

Tobacco giants: only one company ceases operations in Russia

Only one of the four multinational tobacco companies, Imperial Tobacco (UK), has announced the cessation of production and sales in Russia.

"After the recent events, we have stopped all operations in Russia today. This includes cessation of production at our Volgograd plant and all sales and marketing activities. This decision comes amid a highly challenging environment in Russia as a result of international sanctions and consequential severe disruption. We will support our Russian employees, who will receive a salary while operations are stopped," the company said in a statement.

The company noted that it had also stopped its activities in Ukraine due to the security situation.

Philip Morris has stopped planned investments in Russia.

"Philip Morris International (PMI) today announces the suspension of planned investments in the Russian Federation, including all new product launches as well as commercial, innovative and industrial investments," PMI said in a statement. "PMI has also activated plans to reduce its production operations in Russia amid prolonged supply chain disruptions and changes in the regulatory framework."

Chief Executive Officer, Jacek Olczak, added that the company was shocked by the war in Ukraine and "strongly condemns the violence".

"Given the situation, the Board of Directors and our senior management team have decided to halt all our planned investments in Russia and intensify plans to reduce our production operations. We will support our employees in Russia during this period by continuing to pay their salaries," Olczak said.

British American Tobacco will continue to operate in Russia.

"Our business in Russia continues to operate. We have suspended all planned investments in Russia and will focus on our portfolio of locally produced tobacco products," the company said in a statement.

The company added that it adheres to, and will comply with, in full, all international sanctions related to the war in Ukraine.

They also noted that they were also "very concerned about the war in Ukraine".

Japan Tobacco International remains in Russia. The company has not yet made any statement.

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