How Philip Morris, which supported the war in Ukraine, continues to operate in the country

Philip Morris International (PMI) is an American global cigarette and tobacco company, whose products are sold in more than 180 countries (most famous brands: Marlboro, Parliament, Bond, Chesterfield, L&M, Next, HEETS – IQ e-cigarette sticks) Ukraine’s heating system is considered a sponsor of the war, as it continues to work in Russia and pays huge taxes there.

Philip Morris supports the war in Ukraine. Photo courtesy of Open Source

In the Russian Federation, Philip Morris International has two subsidiaries: Philip Morris Izola JSC plant in the Leningrad region, Philip Morris Izola Kuban, a branch of Philip Morris Izola JSC in Krasnodar, and Philip Morris Organization Sales and Marketing LLC with branches in about 100 cities across the country. In 2019, the market share of Philip Morris International trademark in Russia was 30.1%. According to the website of the National Agency for the Prevention of Corruption (NACP), the company is one of the largest taxpayers of the Russian budget, which then supports the Russian military.

Last August NAPC Contributed Philip Morris International is included on the list of international war sponsors.

Meanwhile, Philip Morris continues to operate in Ukraine, also receiving considerable concessions. In particular, in the future, excise taxes on IQOS will actually be reduced by 20%. In June, the Verkhovna Rada of Ukraine passed a bill at first reading providing for a sharp increase in cigarette prices, which will lead to a significant increase in costs in 2024, and the price of each pack of cigarettes may double by 2028. At the same time, lawmakers surprisingly “forgot” about TVEN (electrically heated tobacco products), including IQOS, and actually provided them with a 20% discount, because they, unlike cigarettes, should not increase in price! And this at a time when the Ukrainian government is desperately looking for money and raising taxes to finance, in particular, the army.

You can find information on the Internet that one of the lobbyists of this company, an international sponsor of the war, is Maryan Zablotsky, a People’s Deputy of Ukraine at the 9th Assembly, who for the third consecutive year won the “Golden Braid” anti-award (the award annually recognizes politicians who defend the interests of tobacco companies and block initiatives to protect public health). Social activists write that Maryan is pushing all her “wishes” and tax benefits through the Verkhovna Rada and the Cabinet.

In particular, the veto of Amendment No. 174 to Bill 9206, which provides for a ban on the visible placement of tobacco products and e-cigarette devices in retail stores, was sponsored by Councillor Maryan Zablotsky, winner of the Golden Braid Anti-Award for the third consecutive year.

Another important and effective tool of Philip Morris’ work in Ukraine and the world is an active advertising budget in the media, which prevents the appearance of negative information about the Prime Minister. This is despite the fact that the company is considered an international sponsor of terrorism at the Ukrainian state level and has not reduced but developed its business in Russia, while paying billions in taxes to the budget. Russia then launched a war.

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