NEW YORK —Philip Morris International (PMI) is scaling down operations in Russia and plans to exit the market amid the ongoing conflict in Ukraine.
As of March 24, the tobacco company has discontinued some of its cigarette products offered in Russia, suspended marketing activities in the country and cancelled all product launches planned for 2022 in Russia.
“We have watched with shock the war in Ukraine and condemn the violence in the strongest possible terms. We stand in solidarity with the innocent men, women, and children who are suffering,” said Jacek Olczak, CEO. “We join the many voices calling for an immediate end to the war and the restoration of peace.”
PMI’s board of directors and senior executives are working on options to exit the Russia market, the company said.
“Our focus and all our efforts over the last four weeks have been to ensure the safety and security of our Ukrainian colleagues. We stand in solidarity with the innocent men, women and children who are suffering,” Olczak said. “We employ more than 3,200 people in Russia. We continue to support them, including paying their salaries, and we will continue to fulfil our legal obligations. We will continue to make decisions with their safety and security as a priority.”
Russia made up almost 10% of total shipment volumes and around 6% of PMI net revenues in 2021. PMI will provide an update to its 2022 financial outlook with its first quarter 2022 earnings announcement on April 21.
PMI also halted operations in Ukraine amid Russia’s attack on the country, the New York-based company announced in early March. Ukraine accounted for about 2% of PMI’s total cigarette and heated tobacco unit shipment volume in 2021, and less than 2% of PMI’s total net revenues.
“We have taken action to achieve three critical missions: helping to evacuate more than 800 people, to date, including from the most impacted areas; providing critical aid to employees who remain in Ukraine; and providing those who have left the country with logistical, medical, financial, and other practical support in neighboring countries,” Olczak said.
PMI is continuing to support humanitarian efforts in Ukraine, including delivering shipments of food, medicine and other necessities and donating more than $300,000. The company continues to pay salaries to all its Ukraine employees and has pledged an additional $10 million to support international humanitarian efforts.
PMI sells tobacco products in more than 180 markets, according to its website. Its top brands include Marlboro, Parliament, Virginia Slims, IQOS and more.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.