PMI to Resume Production in Ukraine

In a recent interview with Interfax Ukraine, Massimo Andolina, President for Europe at Philip Morris International (PMI), discussed the company's prospects in Ukraine in the wake of Russia's invasion. PMI is reportedly considering options for resuming manufacturing in the country.

Due to security concerns stemming from the ongoing conflict, PMI had halted production at its Kharkiv factory. The firm's brands in Ukraine are temporarily being produced by Imperial Tobacco. However, PMI intends to establish its own production facilities in Ukraine.

Andolina emphasized the twin motivations of wanting to produce PMI's products domestically and the company's commitment to investment in Ukraine, even during war times. The firm is actively studying alternative plans for setting up new production facilities, with an announcement expected soon.

The interview also touched upon the decrease in PMI's sales in the Ukrainian market. Andolina attributed this to the displacement of some consumers and competition from illicit products. PMI has been in talks with the government to address this issue and is confident about the government's commitment to combating corruption and crime.

Lastly, Andolina spoke about PMI's position in Russia, emphasizing that the firm's top priority during the conflict is the safety of its Ukrainian employees. Hence, they have paused investments in Russia and reduced operations. Despite previous intentions to exit the Russian market, changes in the regulatory environment have made it difficult for a company with significant business and assets to withdraw.

Thumbnail source: PMI