British American Tobacco announced its withdrawal from Russia

Tobacco company British American Tobacco announced the termination of its activities in Russia, the company’s press service reports. On the Russian market, BAT is represented by the cigarette brands Kent, Rothmans, Vogue, Dunhill, Pall Mall, Lucky Strike, Java Zolotaya, etc., as well as the Glo tobacco heating system.

“Today we initiated the process of rapid transfer of our Russian business in full compliance with international and local laws. In addition to continuing to pay our 2,500 employees, we will do our best to ensure their future work. After completion, BAT will no longer be present in Russia,” the company said in a statement.

At the same time, on March 9, the company announced the continuation of its activities in Russia, but announced a temporary suspension of future capital investments. British American Tobacco opened its representative office in Russia in 1991.

On March 9, Imperial Brands announced the suspension of production, the cessation of sales and marketing activities in Russia. It produced cigarettes and tobacco products under the brands Davidoff, West, Jadé, P&S, Maxim and myblu. On the same day, Philip Morris, another tobacco concern, announced the suspension of planned investments in Russia. JTI made a similar decision.

Foreign companies began to leave the Russian market or suspend their activities in the region in connection with the military operation that Russia launched on February 24 in the Donbass and Ukraine. Since that day, more than 300 organizations from various sectors have announced such decisions, including the IT industry, grocery retail, cosmetic brands, clothing and furniture brands, and enterprises in the automotive sector.

Against this background, the State Duma proposed to nationalize foreign enterprises operating in Russia. As a result, the Ministry of Economic Development has developed a draft law, according to which in companies where more than 25% is owned by foreign persons, external management can be introduced by a court decision. In relation to organizations in this case, provisional measures are applied aimed at preserving property and the number of employees, shares are frozen. If, as a result, the foreign owner refuses to resume operations or sell the share, three months after the introduction of the provisional administration, the company is put up for auction, and a new one is created on its basis.

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