10 Mar 2022 17:13

JTI suspends investments, advertising in Russia

ST. PETERSBURG. March 10 (Interfax) - Japan Tobacco International subsidiary JTI will suspend all new investments and marketing activities in Russia, as well as the launch of new products, the tobacco giant said in a press release.

"The challenges of operating in Russia at this time are unprecedented and JTI needs some time to assess the long-term implications of the situation which all large international investors in Russia are currently facing. Unless the operating environment and geopolitical situation improve significantly, JTI cannot exclude the possibility of a suspension of its manufacturing operations in the country," it said.

Russia is one of JTI's largest markets. JTI employs close to 4,000 people in the country. "JTI remains committed to its workforce and all employees will be retained for the foreseeable future," the company said.

JTI has almost a 40% share of the Russian tobacco market. Its Russia portfolio inston, LD, Mevius, Camel, Sobranie and Russian brands Donskoy Tabak, Kiss, Play, Peter I, Troika and others. It also sells Logic Compact e-cigarettes and Ploom heated tobacco products.

Four JTI production sites operate in Russia, including two cigarette factories - Petro in St. Petersburg and Donskoy Tabak in Rostov-on-Don, as well as two supply chain factories: JTI Yelets in the Lipetsk region and Cres Neva in the Leningrad region.