PMI and JT Listed by Ukraine as ‘War Sponsors’ Over Continued Russia Operations

The National Anti-Corruption Agency of Ukraine (НАПК) has listed Philip Morris International (PMI) and Japan Tobacco (JT) as "war sponsors" due to their continued operations in Russia.

On August 25, the Genta News Agency reported that the National Anti-Corruption Agency of Ukraine (НАПК) has included Philip Morris International (PMI) and Japan Tobacco International (JTI) on its list of "war sponsors" for continuing their business operations in Russia.  

According to the agency's statement on its website:

"The National Anti-Corruption Agency of Ukraine has listed two leading global tobacco companies—Philip Morris International and Japan Tobacco International—as international war sponsors. These companies continue to operate in Russia and pay substantial taxes to the Russian government."  

The agency reminded that PMI has two factories in Russia. In 2019, Philip Morris International held a 30.1% market share in Russia.

Currently, PMI's cumulative investment in Russia exceeds $2 billion. The National Anti-Corruption Agency stated:

"Confident in Russia's economic potential, the company is implementing a large-scale long-term investment plan." The agency also noted that in 2022, Philip Morris expressed intentions to sell its Russian business, but these attempts have not been successful.

JTI holds approximately 34.9% market share in Russia and is considered the largest investor and taxpayer in the Russian tobacco industry. Although the company claims to have suspended new investments and market activities in Russia, the National Anti-Corruption Agency pointed out that Japan Tobacco continues to produce and sell its products in Russia.  

Previously, the National Anti-Corruption Agency had blacklisted Austria's Raiffeisen Bank Group, Procter & Gamble from the USA, France's Leroy Merlin home improvement chain, ComNav Technology, Liberian International Ship & Corporate Registry, France's Auchan supermarket chain, Hungary's OTP Bank, Bacardi, and China's Alibaba Group (which owns the online shopping platform AliExpress), accusing them of involvement in violations.

References:    【1】 Ukraine lists Philip Morris and Japan Tobacco as "war sponsors"