Source image of tobacco plantations: Global Look Press.
According to a report from Russian media, Sergei Slipchenko, Vice President of Corporate Affairs for Philip Morris International (PMI), stated that PMI's subsidiary has redirected 92% of its material supply for nicotine products in Russia, now purchasing from Asian regions.
Sliptchenko emphasized that as of early March 2022, over 90% of the production materials used by the company, such as tobacco and acetic fiber, are sourced from Europe.
This is mainly due to the fact that our production in the Russian Federation is now running rhythmically, and finished products are being delivered to the market," said Slipchenko. "We have had to use air transportation, and the price of air transportation has almost tripled.
He added that the tobacco industry in Russia contributes over 700 billion rubles (approximately 82.4 billion yuan) to the federal budget every year in the form of consumption tax, as well as additional taxes such as value-added tax, amounting to almost one trillion rubles (approximately 117.7 billion yuan).
Earlier, it was reported that tobacco manufacturer Imperial Brands (maker of Davidoff, Jade, P&S and Maxim, West) had lost nearly £3.999 billion in operating profits due to their departure from Russia.
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