BAT is finally exiting Russia as it completed the sale of its Russian and Belarussian businesses. Photo credit: BAT
British American Tobacco (BAT) completed the sale of its Russian and Belarussian businesses for an undisclosed price. The sale was carried out in compliance with local and international laws and follows the receipt of all necessary approvals.
The new owner is a consortium led by members of BAT Russia’s management team. The businesses will now be known as the ITMS Group. BAT will no longer have a presence in Russia or Belarus and will receive no financial gain from ongoing sales in these markets.
As part of the agreement, employment terms of employees of both businesses will remain comparable to their existing BAT terms for at least two years post-completion.
According to BAT's Russian office press service, "Throughout the transfer process, same as after it, among the new owner’s key priorities are uninterrupted business processes, ensured employment of the staff, and the implementation of the investment plan approved by the governmental subcommittee."
BAT had a facility in St. Petersburg, 75 regional offices, a head office in Moscow, and an office in Belarus.
BAT’s Russian and Belarussian operations accounted for about 2.7% of its revenue. In March last year the company said ownership of its Russian business was “no longer sustainable in the current environment.”