Philip Morris Invests in Ukraine Despite Ongoing War

Philip Morris Invests in Ukraine Despite Ongoing War
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"It's a gesture of pride to belong to those who are the most courageous," said Michał Mierzejewski, Vice President of Philip Morris International, in an interview with the Polish economic portal WNP.PL. The company is expanding its production in Ukraine.

"According to the latest KPMG report, there was a crisis in legal cigarette sales in Ukraine last year, and cigarette consumption from the so-called 'gray zone' reached one of the highest levels in Europe (around 20%)," stated Michał Mierzejewski, Vice President of Philip Morris International for Northeastern Europe. Due to the closure of the tobacco plant in Kharkiv and disruptions in international transportation, product deliveries to the Ukrainian market have decreased by about one-third.

Philip Morris is preempting political decisions and is already widely opening doors for Ukraine to Europe, providing access to investments, training, innovation, and other opportunities offered by the presence of a large international company operating in the European Union.

Philip Morris's new investment, valued at over $30 million, will create approximately 250 new jobs in the Lviv Oblast. The Lviv factory will provide high-quality products and help combat the shadow economy, which represents about 20% of the cigarette industry in Ukraine, according to the latest KPMG report.

Philip Morris is committed to supporting the fight against the shadow economy through its actions in Ukraine. The Lviv factory is expected to commence production in the first quarter of 2024 and will contribute to both the local economy and the reduction of the cigarette market from the "gray zone."