The National Agency for the Prevention of Corruption (NAPC) has added two international tobacco companies, Philip Morris International and Japan Tobacco International (JTI), to the list of international sponsors of war, the NAPC press service reports.
The National Agency emphasizes that these companies continue to operate in Russia and contribute to the economy of the aggressor country by paying significant amounts of taxes to its budget.
According to the NACP, Philip Morris International’s market share in the Russian market was 30.1% in 2019. The agency recognizes the company as one of the largest taxpayers to the Russian budget and estimates its total investment in Russia at $2 billion.
“According to the financial statements of the Russian division of Philip Morris, the company’s revenue in the first year of Russia’s full-scale invasion of Ukraine increased by 8% to 140.3 billion rubles, and net profit to 48.2 billion rubles, which is 45% more than in 2021. Accordingly, income tax was paid to the Russian budget in the amount of more than USD 136 million,” the statement said.
Japan Tobacco International’s share of the Russian market is estimated by the NACC at approximately 34.9%.
“JTI is the largest investor and leading taxpayer in the Russian tobacco industry. Over the past 20 years, JTI’s investments in the Russian economy have exceeded $4.6 billion. In 2020, the company’s tax payments accounted for 1.4% of the Russian federal budget revenue. The company itself has openly stated that the Russian market generated about USD 2 billion in 2022 for the JT Group, or approximately 11% of its consolidated revenue in 2022,” the statement said.
According to the NACP, both companies continue to operate in Russia: Philip Morris failed to sell its business in Russia, while JTI continues to “manufacture and distribute products in Russia”.
Philip Morris International is an American global cigarette and tobacco company that sells its products in more than 180 countries. The most famous brands: Marlboro, Parliament, Bond, Chesterfield, L&M, Next, HEETS (tobacco sticks for IQOS electronic tobacco heating systems). In Russia, Philip Morris International is represented by two affiliated companies: the factories of Philip Morris Izhora JSC in the Leningrad region and the branches of Philip Morris Izhora JSC and Philip Morris Izhora Kuban in Krasnodar, as well as Philip Morris Sales and Marketing LLC with branches in approximately 100 cities across the country.
Japan Tobacco International is the leader of the tobacco market in Russia, one of the country’s largest FMCG companies in terms of sales. The company’s portfolio in the Russian market includes international brands such as Winston, LD, Mevius, Camel, Sobranie and Russian brands such as Donskoy Tobacco, Kiss, Play, Peter I, Troika and others.