Philip Morris International, a US tobacco company, has admitted that it would “rather keep” its business in Russia than sell it on unfavorable terms. According to the company’s CEO, Jacek Olczak, PMI negotiated with three “serious” candidates for the purchase, but all reached dead ends.

Philip Morris will remain in Russia due to the inability to profitably sell his business

The businessman spoke about it in an interview with the Financial Times. Olchak doubts that in the current realities, in general, it is possible to profitably sell a business in Russia. He recalled that the Russian authorities have established rules for the withdrawal of foreign companies from the country.

According to these rules, the state has the right to dictate all the terms of the transaction, including its amount, the amount of dividends for the new owner, access to funds, etc.

The company’s CEO said that PMI would like to get out of Russia, but cannot find a buyer and has no hope of finding one. “So I’d rather keep it all,” Olchak said.

At the same time, Philip Morris is also unable to “give up” Russian assets due to its responsibility to shareholders.

“I can’t just lose patience and drop everything. This is not my money, this is the shareholders’ money, I manage it for them,” said the company owner.

The cigarette maker Marlboro, Parliament, L&M and other brands announced the reduction of production and the suspension of investments in Russia on March 9 last year. In July, the company announced that it plans to leave the Russian market and continue development in Europe, Asia and America.

All services and companies related to relocation on a single map

Photo: Unsplash

Author:

Ahmed Sadulayev

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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