business news

Philip Morris suspends investments, scales back operations in Russia

Date: March 11, 2022 Sunil Jha Sunil Jha
Philip Morris suspends investments, scales back operations in Russia 
Swiss-American tobacco giant, Philip Morris International Inc. (PMI), has reportedly announced the suspension of planned investments in Russia, and will also scale down on its manufacturing operations in the country due to ongoing supply chain disruption and changing regulations.



Part of its suspension of planned investments included new product launches along with manufacturing, commercial, and innovation investments.



Jacek Olczak, CEO of Philip Morris, stated that the company stands in solidarity with the innocent citizens of Ukraine who are suffering, condemning the violence happening there. Olczak has joined the many voices that have called for an immediate end to the war and restoration of peace.



Olczak stated that the firm’s top priority is ensuring the safety and security of its more than 1,000 employees in Ukraine, and their families. The company will continue to pay salaries to all of its employees in Ukraine.



Olczak added that the firm has helped evacuate over 800 people to date, even those in most impacted areas, as well as in providing aid to employees who still remain in Ukraine, all while also providing medical, logistical, financial, and other support to those who have left the nation to neighboring countries.



PMI, world’s leading tobacco company, known for its brands such as Marlboro and Red & White, said that it will continue supporting the humanitarian efforts, providing aid, and doing everything possible for its employees as well as for the people in Ukraine.



The firm has delivered shipments of basic necessities, including food and medicine, in partnership with NGOs of various countries. In a five-day period, the company’s employees donated over $300,000 to extend support to aid efforts through Projects with a Heart, a PMI employee-led charity program.



The company will be matching these donations in addition to its pledge of an initial $10 million for supporting international humanitarian efforts.



Olczak stated that while the Board of Directors and Senior Management Team have decided on suspending the firm's planned investments in Russia and begun scaling down its manufacturing operations, PMI will continue supporting its Russian employees and will be paying their salaries as well.



Source credit: https://www.businesswire.com/news/home/20220309005611/en/Philip-Morris-International-Inc.-PMI-Suspends-Investment-and-Activates-Plans-to-Scale-Down-Manufacturing-Operations-in-the-Russian-Federation

About the author

View All Posts

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.