Today, tobacco corporations play a crucial role in financing the war, as they pay taxes to the budget of the aggressor country, and the tobacco monopoly only facilitates this. For example, the Kyiv School of Economics has calculated that the money Philip Morris International earned for Russia in 2022 could buy 4,900 Kalibr missiles, 78 fifth-generation Su-57 fighters or 1,089 T-90 tanks.
Back in 2013, Japan Tobacco International (JTI) and Philip Morris International (PMI) signed an agreement to acquire 20% of shares in Megapolis, one of the largest tobacco distributors in Russia. The total transaction value was $3.75-4.25 billion. This agreement strengthened the influence of tobacco companies on the Russian government. At the time of the deal, Megapolis controlled about 70% of cigarette distribution in Russia, making it a key player in the market.
JTI and PMI gained access to Megapolis’ extensive distribution network, which helped them increase sales of their brands in Russia and then in Ukraine.
The Ukrainian distribution company Megapolis, owned by Igor Kesaev, has played a key role in the country’s tobacco market for many years. Its activities have led to an increase in the share of Russian tobacco brands in the Ukrainian market to 80%.
In an interview with investigative journalist Yevhen Plinsky, the executive director of the NGO “Life” Dmytro Kupyra said:
“Igor Kesayev is closely connected to the Russian authorities, as evidenced by the fact that he is the owner of a weapons manufacturing plant in Russia. And this can only be a person directly connected with the Russian authorities, with the Russian president and those close to him. And Kesaev is the owner of the Megapolis distribution company.
And as I understand it, they agreed that since this market is controlled, we also want to have someone there, to be represented corporately, and to have an authorized representative to this arms manufacturer and to give Kesayev this fiefdom to oversee.
Later, Japan Tobacco International and Philip Morris International were added to this company, Metropolis, and they worked fruitfully until February 24, 2022, when a full-scale attack took place. Moreover, Kesayev was the chairman of the board of a monopoly distributor in the Russian Federation. But in April 2022, the tobacco companies asked him so carefully, “You know, it’s kind of awkward that you’re making weapons for the Russian army, and we’re transnational corporations here, can you at least not be the chairman of the board?” that he was removed. Well, when they took him down, he resigned as chairman of the board, and they replaced him somewhere in the ownership structure with some no-name people.”
It is worth noting that Philip Morris International continues to sponsor the war in Ukraine, make excessive profits and finance a terrorist country. In May, Philip Morris International, a sponsor of Putin’s army, opened a new tobacco factory in Lviv. With the money from Philip Morris International, Putin can produce up to 500 calibers a year.