JTI and Imperial suspend cigarette production in Ukraine as they monitor the situation.
Japan Tobacco International (JTI) temporarily suspended operations at its Ukraine plant. Located in Kremenchuk in central Ukraine, the factory has 900 workers making cigarettes for the local market and exports. JTI told Bloomberg all the workers are safe and the company is monitoring the situation closely.
As of December 2021, JTI had a 37% share of the Russian market. In 2018 it paid about US$1.6 billion for Donskoy Tabak and has 4,500 employees across Russia at 70 offices and five factories.
Imperial Tobacco also suspended it Ukraine operations, where it employs around 600 people.
MarketWatch reported that Philip Morris International (PMI) does not expect to be hurt much by US sanctions on Russia, though PMI’s stock dropped 2.7% after the sanctions were announced. In 2021 Russia and Ukraine made up 12% of PMI’s total cigarette and heated tobacco unit shipment volume and around 8% of total net revenue. "Our primary concern is the safety and security of our colleagues and their families, and we are monitoring the situation closely,” the company stated. “At this time, we do not anticipate any material impact on our business related to the announced sanctions."