British American Tobacco has finalized its exit from Russia approximately 18 months after committing to do so following Moscow’s invasion of Ukraine.
The multinational cigarette maker officially announced in a statement on Thursday that it has reached an agreement “to divest its businesses in Russia and Belarus in accordance with local and international regulations.”
The financial details of the transaction were not disclosed, but the company anticipates completing the sale within a month.
“Upon completion, BAT will no longer maintain a presence in Russia or Belarus and will not receive any ongoing revenue from sales in these markets,” the company added.
Since the invasion of Ukraine by Russia in early 2022, numerous companies like Apple, McDonald’s, and Coca-Cola have exited the Russian market. Nonetheless, other major tobacco companies such as Japan Tobacco International and Philip Morris International continue to operate in the country.
Based in London, BAT holds a prominent position in the global tobacco industry, with operations in over 100 countries. Its flagship brands include Camel and Newport.
According to Reuters, BAT controlled nearly 25% of Russia’s tobacco market, making it the fourth largest in the world.
The consortium leading the acquisition of BAT’s Russian and Belarusian businesses is comprised of BAT Russia’s management team, who will become the sole owners of the operations. The businesses will be rebranded as the ITMS Group.
BAT has assured that the current terms of employment for workers in Russia will remain unchanged for a minimum of two years following the completion of the deal.
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