Philip Morris head does not expect exit from Russia before year's end

NEW YORK. July 22 (Interfax) - Tobacco giant Philip Morris International Inc. (PMI) will probably not be able to leave the Russian market before the end of this year, the company's CEO, Jacek Olczak said in an interview with Bloomberg.

"We are working hard to conclude our presence in Russia but I don't think it's going to happen in the time frame of the next quarter," Oclzak said, adding that this could happen "around year end, but "it's a pretty complicated process."

PMI said in March that it was suspending planned investment in Russia, including the launch of new products, investment in innovation, commercial and production activities. The company also activated plans to curtail production operations in Russia amid supply chain disruptions and changing regulation. Later PMI said that its board and management were considering the possibility of exiting the business in Russia.

Russia accounted for almost 10% of PMI's cigarette and heated tobacco product sales in 2021 and about 6% of the company's global revenue.

PMI began working in Russia in 1992, when it opened a representative office in the country. PMI now has more than 3,200 employees in Russia. The company's brand portfolio includes Marlboro, L&M, Bond Street and Parliament, among others, and it also produces tobacco sticks for its Iqos heated tobacco systems.