PMI: Almost All Russian Tobacco Raw Materials Come From Asia
Sergey Slipchenko, vice president for corporate affairs at Philip Morris International (PMI), said that PMI's branches have redirected 92% of the supply of materials for nicotine-containing products in Russia and now buy them from the Asian region.
Slipchenko stressed that at the beginning of March 2022, more than 90% of the company's production materials (such as tobacco and acetate) will come from Europe.
"This is mainly due to the fact that our production in the Russian Federation is now running at a rhythm and finished products are being delivered to the market." Sripchenko said, "We have to use air freight, which has almost tripled in price."
He added that Russia's tobacco industry adds more than 700 billion rubles (about 82.4 billion) to the federal budget each year in the form of excise taxes, plus almost 1 trillion rubles (about 1,177) in VAT and other taxes.
Earlier, it was known that tobacco manufacturers Imperial Brands (Davidoff, Jade, P&S and Maxim, West) lost almost £3.999 billion in operating profits by leaving Russia.
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