The largest manufacturer of cigarettes did not rule out the transfer of business in Russia

In a quarterly report from Japan Tobacco Inc. reported that it was considering the transfer of the Russian business to another owner. The company produces Winston, LD, Mevius, Camel, Sobranie, Donskoy Tabak cigarettes,

Japan Tobacco Inc., Russia's largest tobacco manufacturer, has announced that it is considering changing ownership of its Russian subsidiary. This is stated in the report for the first quarter of 2022, published on the company's website.

“As announced on March 10, we have suspended new investment and marketing activities in Russia. Given the complex and unpredictable environment, JT Group continues to evaluate various options for developing its business in Russia, including a potential transfer of ownership,” the company said in a statement.

The March 10 statement said that Russia is one of the largest markets for JTI. The company has four factories in Russia and about 4,000 employees. Of these, 1100 work in St. Petersburg. “All employees will be retained for the foreseeable future,” JTI promised at the time.

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Commenting on the information provided in the report, JTI told RBC that the company continues its operations in Russia "to ensure uninterrupted provision of consumers with high-quality products." “The company confirms that, in accordance with the decision announced on March 10, it has suspended new investments and new marketing activities in Russia. Given the difficult and unpredictable operating environment in the country in the current conditions and the dependence of the JTI supply chain on imported raw materials, the company is considering various scenarios for the development of the situation,” the press service said.

The company is the largest manufacturer on the tobacco market in Russia. Its portfolio includes international brands Winston, LD, Mevius, Camel, Sobranie and Russian brands Donskoy Tabak, Kiss, Play, Peter I, Troika and others.

On March 11, the British company British American Tobacco (BAT), which produces Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans cigarettes, announced its withdrawal from Russia.

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“We have come to the conclusion that BAT's business ownership in Russia is no longer sustainable under the current conditions. Today we have begun the process of rapid transfer of our Russian business in full compliance with international and local laws,” the company said at the time and assured that after the process was completed, the company would no longer be present in Russia.

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Just two days before the decision, a company spokesman said that BAT would continue to sell products made in Russia, but would suspend investments in the country. BAT justified this decision with the “key principle” of caring for employees. Its staff in Russia then amounted to 2.5 thousand people.

Prior to this, the tobacco company Imperial Brands (brands Davidoff, West, Jadé, P&S and Maxim, the myblu electronic evaporator) announced the suspension of activities in Russia. The company's press service also announced the suspension of the advertising campaign and production at the plant in Volgograd.

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