In April 2024, Philip Morris, one of the world’s largest tobacco players, promises to open a new factory in Ukraine. This company, which currently holds more than 25% of the Russian market and is one of the largest taxpayers in Russia, is investing $30 million in new production facilities in Lviv region, writes Serhiy Rudenko.
That is, on the one hand, Philip Morris is sponsoring Putin’s army through tax payments to the Russian budget. On the other hand, he is building a factory in a country that the same army is trying to wipe off the map.
Two years ago, Philip Morris announced its intention to leave the Russian market. However, this did not happen. Needless to say, there is no need to talk about the reasons. Either the absence of a buyer or the draconian policy of the Russian authorities towards foreign investors. For us, it is a fact that an American company is successfully developing its business in a terrorist country. Philip Morris International’s total investment in the Russian Federation exceeded $2 billion.
According to the financial statements of Philip Morris’ Russian subsidiary, 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 aggressor’s budget in the amount of over USD 136 million.
Philip Morris’ continued work in Russia is a marker for many foreign investors. The company sponsors Russian terrorists. There are no consequences for her yet.
In August 2023, the Ukrainian NACP added Philip Morris to the list of sponsors of international terrorism. This means that the company is automatically included in the World-Check database, the world’s largest database for checking counterparties for links to terrorist organizations, fraud, etc.
It is even more surprising that Ukraine, while labeling Philip Morris a sponsor of international terrorism, does not ban the company from operating in its market. And this is shameful. Because we should not tolerate the work of such companies as Philip Morris, PepsiCo, 7UP, Mirinda, Sandora, etc. in our country, which continue to work for Russia and sponsor Putin’s terrorism.