Billions of dollars in tax payments, incorporation into the Russian government and structures that can produce weapons, and silence in the public space. Investigative journalist Yevhen Plinsky explains how Philip Morris International lobbies for its interests in Ukraine with bloody hands.
A striking example of lobbying by Philip Morris International, an internationalwar sponsor, is the draft law No. 7232. Back in March 2022, the Verkhovna Rada of Ukraine registered the draft law No. 7232 “On Amendments to the Tax Code of Ukraine regarding the Taxation of Business Entities Associated with the Aggressor State”.
This draft law proposes вto introduce additional taxes and fees for business entities that:
- Have assets in the territory of the aggressor state (Russia).
- Trade with the aggressor state or its residents.
- They transfer funds to accounts in the banks of the aggressor state.
All of the proceedsfunds received from these additional taxes and fees, shall be used to finance the Armed Forces of Ukraine. These are billions of hryvnias that could have been used to buy tanks, missiles, and fighter jets for the Ukrainian military.
The draft law has already passed the first reading in the Verkhovna Rada on April 21, 2022.
However, it has not yet been adopted in the second reading. The reason is the influence of large multinational companies such as Philip Morris International and lobbying and support in the Cabinet of Ministers and the Verkhovna Rada, which do not allow this bill to pass in the second reading, and the reason is money. Serhiy Mytkalyk, executive director of the Anti-Corruption Headquarters NGO, said this in an interview with investigative journalist Yevhen Plinsky.
“In fact, it’s a trivial business. First of all, let’s be honest: the tobacco industry has become embedded in the Ukrainian government. They have support from the Cabinet of Ministers, good lobbying and support in the parliament. For example, there is a draft law No. 7232, which states that if a multinational corporation trades in Russia and Ukraine, then such a company should pay twice as much tax to the Ukrainian budget. The draft law was passed in the first reading and has been lying dormant in parliament since May. And this is a demonstration of how the industry has good influences and connections and does not allow such good initiatives to be implemented. This is just one example, because in general, it shows how the industry does not want to leave the Russian market, stay in the Ukrainian market, and provides such perks as “Spheres of Light” (“Points of Unbreakable” – the installation of which in Ukraine was financed by Philip Morris with sponsor money) or any other assistance,” said Mytkalyk.
The expert added that with such “Spheres of Light” the international sponsor of the war, Philip Morris International, is changing the media focus and everyone is talking about the points of invincibility, but no one is talking about the fact that cigarettes are harmful to health, because more than 85 thousand Ukrainians die every year from smoking-related diseases in Ukraine, and the money that the tobacco giant pays to the Russian budget is already killing Ukrainians with missiles and bullets.
“For some reason, the Ukrainian government does not say that seven billion dollars means millions of bullets, thousands of tanks manufactured in Russia. I’m talking about thousands of tanks that are manufactured in Russia for this money and sent to kill Ukrainians, so we have two aspects here, one is health damage, the other is in the form of weapons, from the funds that go to the budget of the terrorist country from the sale of cigarettes,” Mytkalyk summarized.
Despite the delay, the adoption of this draft law remains urgent. After all, theit can become an important tool for increasing economic pressure on рRussia and financing of the Ukrainian army.