IQOS maker Philip Morris International said on Wednesday it has suspended investment plans in the Russian Federation and will scale back manufacturing in the country after the Russian-Ukrainian war.
Previously planned investments include new product launches as well as commercial, innovation and manufacturing investments.
Like many Western brands, the company continued to pay all its employees in Russia and Ukraine during this period. Philip Morris, which suspended operations in Ukraine on Feb. 25, will account for less than 2% of its total net income in 2021, while Russia accounts for about 6%.
The company has a factory in Ukraine with nearly 1,300 employees and more than 3,200 in Russia. British-listed tobacco company Imperial Brands Plc has also suspended all operations in Russia following the imposition of international sanctions on Russia.
