International tobacco companies fund Russia’s war against Ukraine
More details
Hide details
Advocacy Center 'LIFE', Kyiv, Ukraine
Publication date: 2022-07-05
Tob. Prev. Cessation 2022;8(Supplement):A59
Since the invasion of Ukraine began, almost 1000 companies have curtailed operations in Russia. Huge corporations can turn down profits in Russia because their reputation is more valuable than their earnings for many of them. But some of them remain. The tobacco giants continue to operate in Russia and fill the budget of the Russian state with taxes. It shows once again that windfall profits have always been more important to Big Tobacco than human lives. The head offices of tobacco companies in official positions condemn the war against Ukraine. They also stated that they would reduce their presence in the Russian Federation, but it didn’t go any further. The largest foreign companies that remained in Russia, excluding banks, pay about $20 billion annually to the Russian budget. Almost 30% of this amount ($5.73 billion) are owed to tobacco giants. Philip Morris International (PMI) – the tobacco giant, which has created about 4000 jobs in Russia, is one of the largest taxpayers, continues to work in Russia. In 2020, PMI paid 216 billion rubles ($2.59 billion) to the Russian budget. Another tobacco giant – Japan Tobacco International (JTI) company produces the biggest share of tobacco products, making up almost 35% of the Russian market. 4500 people work in three Russian factories. The company continues to operate in Russia and in 2020, the company provided 1.4% of the federal budget of Russia Federation income, which is 262 billion rubles, ($3.8 billion). Rudimentary estimates shows that in 2020, these two tobacco giants paid 478 billion rubles to the budget of the Russian state – which is $5.73 billion. It should be noted that under pressure from the international community, the rest of Big Tobacco left the Russian market. British American Tobacco announced the intention to leave Russia, although 16 days after the start of the war against Ukraine, BAT continued to pay taxes to the Russian state. One of the obvious reasons why companies are in no hurry to leave the Russian Federation is the loss of income. For example, Adidas has calculated that exiting the Russian market will cost them 250 million euros, Apple is losing $3 million daily, and McDonald’s will lose $50 million monthly. For tobacco companies, the numbers will be commensurate. We call for maximum pressure on Japan Tobacco International (JTI) and Philip Morris International (PMI) companies and to boycott their products. They continue to operate in Russia and pay taxes, with which the Russian government is financing its military actions against Ukraine. The actions of British American Tobacco (BAT) and Imperial Tobacco (IT) need careful attention as well, despite their statements about leaving Russia, they continue to work and pay taxes, thus potentially sponsoring hostility against Ukraine.
Journals System - logo
Scroll to top