British American Tobacco has finalized its exit from Russia about 18 months after it pledged to take action within the wake of Moscow’s invasion of Ukraine.
The multinational cigarette maker stated in a press release Thursday it agreed “to promote its Russian and Belarusian companies in compliance with native and worldwide legal guidelines.”
Monetary phrases of the deal weren’t disclosed, however the transaction is predicted to be accomplished inside a month, the corporate stated.
“Upon completion, BAT will not have a presence in Russia or Belarus and can obtain no monetary acquire from ongoing gross sales in these markets,” it added.
Since Russia invaded Ukraine in early 2022, hundreds of firms resembling Apple, McDonald’s and Coca-Cola pulled out of Russia. Nonetheless, different world tobacco giants are nonetheless doing enterprise within the nation, together with Japan Tobacco Worldwide and Philip Morris Worldwide.
London-based BAT is a key participant within the world tobacco market with enterprise operations in additional than 100 nations. BAT’s high manufacturers embrace Camel and Newport.
It managed practically 25% of Russia’s tobacco market, which is the fourth largest on the planet, based on Reuters.
The customer is a consortium led by members of BAT Russia’s administration staff, which is able to wholly personal the Russian and Belarusian companies, BAT stated. They’ll then be often known as the ITMS Group.
BAT stated the employment of staff in Russia will stay similar to their current phrases for at the least two years after the deal closes.
