Ukraine added Philip Morris and Japan Tobacco to the list of “war sponsors”

The National Agency for the Prevention of Corruption (NAPC) of Ukraine has included in the list of “war sponsors” two international tobacco companies – an American Philip Morris International and Japanese Japan Tobacco International, follows from the agency’s message.

The decision to include the companies in the NAPC list was explained by the fact that they continue to do business in Russia and support its economy by paying significant income.

The agency noted that the market share of trademarks Philip Morris in Russia in 2019 was 30.1%, and the company’s investment in business development in the country exceeded $2 billion. Despite the fact that Philip Morris announced plans to sell the Russian business, the company continues its long-term investment program.

In the first year of the special operation in Ukraine, the company’s revenue amounted to 140.3 billion rubles. (+8%), net profit – 48.2 billion rubles. (+45%), the agency clarifies with reference to the financial statements of the Russian division. According to the calculations of the Ukrainian department, the company paid $136 million in income tax to the Russian budget.

Japan Tobacco is one of the largest FMCG companies in the country in terms of sales, with a 34.9% market share. The manufacturer’s investments in the Russian economy over 20 years have exceeded $4 billion. NAPC notes that the company itself stated that in 2022 the Russian market brought it 11% of its consolidated income.

“Although representatives of Japan Tobacco have stated that Japan Tobacco Group has suspended new investments and marketing activities in Russia, the company still continues to manufacture and distribute products in Russia,” the NAPC added.

On August 17, the list was enabled the Alibaba group of companies (the company also owns the AliExpress marketplace) due to the fact that it provides Russia with its platforms for the sale of goods from copper, which was mined in new Russian territories.