Philip Morris stops investing in Russia and reduces manufacturing

Philip Morris office

Reuters: Philip Morris stops investing in Russia and reduces manufacturing.

Following Moscow's invasion of Ukraine, Philip Morris International Inc (PM.N) has paused its planned investments in the Russian Federation and will scale back industrial operations in the country.

New product releases, as well as commercial, innovation, and manufacturing initiatives, were previously anticipated investments.

During this time, the company, like many Western brands, including McDonald's Corp (MCD.N), is continuing to pay all of its employees in Russia and Ukraine.

Ukraine, where Philip Morris temporarily stopped operations on February 25, accounted for less than 2% of total net sales in 2021, while Russia accounted for roughly 6%.

In Ukraine, the company has one facility and nearly 1,300 people, while in Russia, the company has three factories and over 3,200 employees.

Imperial Brands Plc (IMB.L), a UK-listed cigarette company, has also stopped all operations in Russia as a result of international sanctions imposed on the country.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Krishna Chandra Eluri, Reuters.