Only one of the four multinational tobacco companies - Imperial Tobacco (UK) - as of 9 March 2022 announced the cessation of production and sales in Russia.
"After the recent events, we have stopped all operations in Russia today. This includes the cessation of production at our plant in Volhohrad and the cessation of all sales and marketing activities. This decision was made because of the tough situation in Russia due to international sanctions and serious violations. We will support our Russian employees, who will receive a salary while the activity is stopped," the company said in a statement.
It is also noted that the company stopped its activities in Ukraine due to the security situation.
Philip Morris is halting investment in Russia and initiating a plan to shorten production, including new product launches and investment in advertising, innovation, and modernization.
"Philip Morris International today announces the suspension of planned investments in the Russian Federation, including all new product launches, as well as commercial, innovative, and industrial investments," the PMI said in a statement. "PMI has also initiated plans to reduce its production operations in Russia due to prolonged supply chain disruptions and changes in the legislation"
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, including paying their wages," Olchek said.
The company also noted that they would continue to monitor the situation.
"We were shocked by the start of the war in Ukraine. We strongly condemn the violence. We stand in solidarity with all innocent people suffering from military aggression. We join the many voices calling for an immediate end to the war and peace," said PMI Chief Executive Officer Jacek Olczak
"We are working to achieve three critical goals: to help evacuate those who leave, today it is more than 800 people, including those from the most affected areas; to provide emergency assistance to workers who remain in Ukraine; to provide logistical, medical, financial and other practical support for those who have moved to neighboring countries. During this period, we continue to pay salaries to all our Ukrainian employees, "added the PMI CEO.
The company provides humanitarian aid and does everything possible for its employees and the people of Ukraine. PMI has organized the supply of food, medicine, and essential goods in partnership with non-governmental organizations in many countries. Over the past five days, the company's employees have donated more than $ 300,000 to support Ukrainians. In addition, PMI has promised to transfer $ 10 million to support international humanitarian efforts.
For reference
PMI started operating in Ukraine in 1994. On 25 February 2022, the company announced the temporary suspension of its activities in Ukraine, including the plant in Kharkiv. In 2021, the Ukrainian market accounted for about 2% of total shipments of cigarettes and tobacco products for electric heating and less than 2% of the total net income of PMI. Currently, about 1,300 employees work in Ukraine. The company plans to resume operations as soon as it is safe fully.
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 fully comply with all international sanctions related to the war in Ukraine.
They also noted that they were also "very concerned about the war in Ukraine."
(updated). On 11 March, British American Tobacco announced the cessation of its activities in Russia.
"We have completed the verification of our presence in Russia. The context is very complex, extremely fast-paced, and changing. We have concluded that BAT's ownership of the business in Russia is no longer stable in the current environment. As a result, today we initiated a process of rapid relocation of our Russian business in compliance with international and local laws, "the statement said.
The company claims that all 2,500 employees will have their salaries saved and that everything possible will be done in the near future to ensure their employment.
For reference. British American Tobacco produces cigarettes under the brands Dunhill, Kent, Lucky Strike, Pall Mall, Newport, Rothmans International, Camel, Natural American Spirit, and some local brands (well known in Russia local brand Yava Zolota); altogether, around 200 brands.
Japan Tobacco International remains in Russia. The company has not yet made any statements.