(Sharecast News) - US tobacco giant Philip Morris said on Thursday that it was planning to exit the Russian market "in an orderly manner" following the country's invasion of Ukraine.
The Marlboro cigarettes maker joins a long list of companies exiting Russia, including rivals British American Tobacco and Imperial Brands.
The company said in a statement that it has discontinued a number of cigarette products offered in the market and is reducing its manufacturing activities accordingly. It has also suspended marketing activities in Russia and cancelled all product launches planned there for this year, including the launch of its flagship heated tobacco product IQOS ILUMA.
PMI has cancelled plans to make more than 20bn TEREA sticks - for IQOS ILUMA - in Russia and the related ongoing investment of $150m.
Chief executive officer Jacek Olczak said: "We employ more than 3,200 people in Russia. We continue to support them, including paying their salaries, and we will continue to fulfil our legal obligations. We will continue to make decisions with their safety and security as a priority."
Russia made up nearly 10% of total shipment volumes and around 6% of PMI's net revenues in 2021.