Japanese tobacco company JTI decides to continue its business in Russia
Pravda Ukraine
Japanese tobacco company Japan Tobacco International (JTI) decided to continue its business in Russia.
Source: Forbes Russia with reference to Sergey Glushkov, director of corporate relations and communications of JTI Russia
Details: Glushkov claims that the company made such a decision “in order not to deprive consumers of the product to which they are accustomed.”
At the same time, according to him, JTI will not launch a new generation tobacco heating device on the Russian market. Glushkov also said that JTI complies with all regulatory rules, both international and in the Russian market.
Background:
- In August, the Ukrainian National Agency on Corruption Prevention (NACP) added two of the world’s leading tobacco companies to the list of international sponsors of the war: Philip Morris International and Japan Tobacco International. Both companies maintain their businesses in Russia and pay significant taxes to the Russian coffers.
- Japan Tobacco International (JTI) is the undoubted leader of the tobacco market in Russia (the company’s market share is about 34.9%) and is one of the largest FMCG companies in the country in terms of sales.
- The company’s portfolio in the Russian market includes international brands such as Winston, LD, Mevius, Camel, Sobranie and the Russian brands Donskoy Tobacco, Kiss, Play, Petr I, Troika and others.
- Over the past 20 years, JTI’s investments in the Russian economy have exceeded US$4.6 billion. Tax payments of the company in 2020 provided 1.4% of the income of the federal budget of Russia.
- In 2022, the Russian market generated about US$2 billion of investment for the JT Group, or roughly 11% of its 2022 consolidated revenue.
- Despite the fact that representatives of JTI stated that JT Group suspended new investments and marketing activities in Russia, the company still continues to produce and distribute products in Russia.
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