Tobacco company Philip Morris will “rather leave” its business in Russia than sell it

American tobacco company Philip Morris International “rather leave” his business in Russia than sell it on unfavorable terms, declared newspaper Financial Times, its CEO Jacek Olczak.

“I know some people think we decided not to leave, but we didn’t make any decision because we can’t put the decision into action,” Olchak said.

The company has been in talks with at least three potential buyers, he said, but the discussions “have stalled” because no one knows how to get a good deal under the current conditions. He also pointed out that he has an obligation to shareholders to “return the value” of the asset.

At the beginning of March 2022, against the backdrop of a Russian special operation in Ukraine Philip Morris suspended all investments in Russia, including the launch of new products. The company cited “continuing supply chain disruptions and a changing regulatory framework” as the reason for the decision. The Russian market is the seventh largest for Philip Morrisand the share of the manufacturer’s tobacco products on it is 27%.

At the same time, another company, a manufacturer of tobacco products, announced its withdrawal from Russia. british american tobacco. At the end of April, the tobacco company Imperial Brands stopped its activities in the country. The concern announced that it would transfer its Russian business to local investors. Later, Japan Tobacco also shared plans to sell its business in Russia.