1742On August 28, 2023, at 9:30 AM, NGO LIFE organized a press conference which took place at the press center of the “Ukrinform” information agency on the occasion of the inclusion of tobacco companies Philip Morris International and Japan Tobacco International into the registry of International Sponsors of War by the National Agency on Corruption Prevention (NACP).
The participants of the press conference talked about the functioning of the registry, the reasons for including tobacco companies, and the implications for their global and Ukrainian standings.
Philip Morris International and Japan Tobacco International continue their operations in Russia, contributing billions of dollars in taxes to the aggressor country’s budget, effectively sponsoring the war against Ukraine. According to research of the Kyiv School of Economics, these companies ranked first and second, respectively, in terms of revenue in Russia for the year 2022. In particular, Philip Morris’s income for the past year reaches $7.888 billion, and Japan Tobacco International – $7.358 billion.
Furthermore, these companies are among those that have benefitted the most from Russia’s military aggression against Ukraine. Throughout 2022, they managed to increase their revenue: Japan Tobacco International by $1.518 billion compared to 2021, and Philip Morris International by $613 million.
“The recognition of Philip Morris International and Japan Tobacco International as International Sponsors of War is very important. This not only affects the NACP sanctions list but also impacts the reputation of these companies. They are now added to the well-known World-Check database, which keeps track of individuals and organizations with heightened risks and is utilized worldwide to identify and manage financial, regulatory, and reputational risks. International investors and other companies rely on this database”, said Agiya Zagrebelska, head of the direction of minimizing corruption risks in the sanctions policy of the National Agency on Corruption Prevention.
“We welcome the decision of NACP to include tobacco companies in the registry of International Sponsors of War. This is a crucial step. PMI and JTI’s recognition as International Sponsors of the war against Ukraine should serve as a clear signal for both the Parliament and the government to cease any interaction with the tobacco industry and implement new effective policies to protect the health of Ukrainian children and youth from tobacco harm,” emphasized Lada Bulakh, a Member of the Ukrainian Parliament and a member of the Committee on Health of the Nation, Medical Assistance and Medical Insurance.
The inclusion of tobacco companies into the registry of International Sponsors of War occurred following an initiative by the Advocacy Center “Life”. In their appeal, the public called for the inclusion of three tobacco companies — PMI, JTI, and British American Tobacco (BAT) into the list. BAT generated revenue of $4.2 billion from its operations in Russia in 2022. Another transnational tobacco company, Imperial Tobacco, formally exited the Russian market, yet its products continue to be produced and sold within the territory of the state terrorists.
“We thank NACP for responding to the public’s call to include tobacco companies in the list of International Sponsors of War. The recognition of PMI and JTI as International Sponsors of the war against Ukraine should serve as a red marker for the Government and state institutions. Any interaction with these companies is unacceptable. We urge the Cabinet of Ministers of Ukraine to halt the construction of the new Philip Morris International tobacco factory,” noted Dmytro Kupyra, Executive Director of “Life”.
“Tobacco companies all over the world always profit from wars. The tobacco industry does not spare anything in its pursuit of profit – not even human lives, let alone health. PMI and JTI deserve to be added to the register of International sponsors of war – they don’t just continue to operate in Russia and pay taxes to Putin’s war machine, they do this while also interfering in Ukraine’s domestic affairs. Ukraine must protect itself from this predatory behavior and exclude Big Tobacco from policymaking while increasing any and all legal penalties that make these companies liable for the damage they are causing”, noted Joshua Abrams, Regional Director for Ukraine and Eurasia for the Campaign for Tobacco-Free Kids, a US based global public health organization.
Previously, the “Life” organization’s team calculated how much weaponry the Russian government could purchase with the taxes paid by tobacco companies in 2022. According to The Telegraph, over 8 months since the full-scale Russian invasion of Ukraine, the tobacco industry contributed nearly £7 billion (approximately $9 billion) to the Russian budget.
The “Life” organization calls for the addition of British American Tobacco (BAT) to the list of International Sponsors of War. The statement by BAT about its intentions to exit the market is not credible and in no way cancels out the fact of the company’s presence in Russia and tax payments. For 2022, BTI increased its revenue in Russia by $562 million compared to 2021.
For contact information: Olha Masna, Media Manager of “Life,” 073 089 65 70, olha.masna@center-life.org
Photo: Ukrinform