Cigarette exports from Ukraine are back: Philip Morris launches production in the West of the country
30 May 22:01
Philip Morris Ukraine, a subsidiary of the global tobacco giant Philip Morris International (PMI), has announced the resumption of cigarette exports from Ukraine. The first deliveries are planned to be made to Central and Eastern Europe, which are geographically close to the new production base in Lviv region , "Komersant Ukrainian" reports, citing the company’s CEO Maxim Barabash.
Before the full-scale invasion of Russia in 2022, Philip Morris manufactured products at the Kharkiv factory. Every year, the plant produced up to 20 billion cigarettes, of which 50% were exported to more than 20 countries, including Japan, Israel, Georgia, Moldova, and the EU. However, with the outbreak of hostilities, the company was forced to stop operations for security reasons.
In 2024, the company completed the construction of a new factory in Horodok, Lviv region. The $30 million project was completed in record time – less than a year. In addition, the company invested another UAH 60 million in the construction of a full-fledged protective shelter for personnel in accordance with current civil protection standards.
The new factory has an annual capacity of 10 billion cigarettes. The production is already fully operational and provides jobs for hundreds of Ukrainians. According to Maxim Barabash, the company sees the future in Ukraine and continues to invest despite the risks.
“Not investing in Ukraine would mean losing much more. We see the potential for economic recovery and want to be a part of it,” said Barabash.
Philip Morris International has been operating in Ukraine since 1994. Over this time, the company has invested more than $750 million in production, distribution, personnel development and infrastructure. It is one of the largest taxpayers in the country: in 2023 alone, the company paid more than UAH 25 billion to the budgets of all levels.
The resumption of exports is not only economically important, but also reputationally important. It is a signal to other international investors that even in times of war, Ukraine remains a country with effective production capabilities, logistics, and government support. In addition, the company actively supports Ukrainian charitable initiatives, including assistance to IDPs and medical institutions.
It is also important to note that the new production facility in Horodok meets PMI’s environmental and energy efficiency standards, and also takes into account the potential for transitioning to smokeless products as part of the company’s global harm reduction strategy.
Read also: 3 well-known tobacco companies were deprived of their licenses in Ukraine
What you need to know about Philip Morris International (PMI)
PMI is one of the largest multinational tobacco companies in the world, known primarily for the Marlboro brand, as well as dozens of other cigarette and smokeless brands. The company is actively transforming itself to reduce harm from smoking and develop alternative products.
- Headquarters: Lausanne, Switzerland
- Year of foundation: 2008 (spun off from the American Altria Group; before that, its international division)
- Number of employees: over 79,000 in more than 180 countries
- Net income (2023): over $35 billion
- Main brands: Marlboro, Parliament, L&M, Chesterfield, Bond, IQOS, HEETS, TEREA, ZYN (nicotine pouches)
Smokeless Future strategy
Philip Morris International was the first tobacco company to publicly announce its commitment to abandon traditional cigarettes. The company has invested more than $10 billion in research and development of smokeless alternatives, primarily the IQOS tobacco heating system, which has become a leader in this market.
According to PMI representatives, the company’s goal is to ensure that in the future the majority of its profits are generated from alternatives to smoking, not from cigarettes.
Philip Morris in Ukraine
Philip Morris has been operating in Ukraine since 1994. The company is one of the largest taxpayers in Ukraine. Its social initiatives include support for veterans, assistance to IDPs, equality and environmental projects.
Technology and research
PMI has its own R&D centers in Switzerland and Singapore. Its laboratories develop:
- IQOS – a device for heating tobacco without burning
- Lil SOLID, TEREA, BONDS by IQOS – other heating systems
- ZYN – tobacco-free nicotine spiders
- VEA – vaping platform (e-cigarettes)
PMI has often been criticized by health organizations for continuing to sell cigarettes in countries where IQOS is not yet available, using “green” or “scientific” marketing, and lobbying against tough anti-tobacco laws in certain countries.
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