"We are working hard to end our presence in Russia, but I don't think that will happen within the next quarter," he told Bloomberg Television.
Olchak specified that the exit process is expected to be completed "by the end of the year." He noted that the Russian Federation was an important market for the company - the seventh largest tobacco market in the world in terms of retail value, the share of Philip Morris International Inc. Here it was 27%. But under the changed conditions, it is extremely difficult to work in Russia due to difficulties with supply chains and financial transactions. After exiting the Russian business, the company is reorienting itself to the European, Asian and American markets. Now Philip Morris is waiting for potential growth in these markets, but it is “sad” to lose investments in the Russian Federation.
In March, Philip Morris announced it was cutting production in Russia due to supply issues and stopped investment programs and new product launches. At the same time, the company promised to support employees and pay salaries. The staff of the American company in Russia is 3,200 people.
By the way, the Marlboro brand, which is owned by Philip Morris International, remains the most expensive tobacco brand in the world.
In April, we recall, Japan Tobacco, the largest manufacturer of tobacco products in Russia (Camel, Salem, Collection, Glamor, Silk Cut, LD, BensonHedges, Peter l, Russian Style, Nasha Prima and Belomor") declared its intention to leave the country and change the owner of its subsidiary. However, then experts assured that there would be no shortage of cigarettes in Russia.