1020On December 4, 2023, at the Ukrainian Crisis Media Center NGO “Advocacy Center “Life” in partnership with the NGO “National Interests Advocacy Network “ANTS” conducted a press conference titled “How to Stop Financing the Russian Military Budget”. The expert community discussed the threats posed by continuing funding of the Russian military budget by transnational companies and initiatives to cease economic activity in Russia.
Today, Ukraine not only defends its independence but also serves as Europe’s shield against the aggression of Russia, a terrorist country waging a genocidal war on our people to extinguish Ukraine as an independent nation. In its pursuit of dominance, Moscow employs war against Ukraine to dismantle the fundamental pillars of international order and security, which it considers obstacles to its revanchist policies.
Hence, comprehensive international support for Ukraine at all levels is crucial. The world should exert more effort to halt Russia, and countries and companies must make unequivocal decisions to cease cooperation with Moscow and exit the Russian market.
“Ukraine is fighting the enemy not alone but with powerful support from partners. Yet, it’s Ukrainians who sacrifice the most — their lives. The entire world must consolidate and provide even greater support because it’s not just Ukraine’s territory at stake but the historical trajectory of global democracies. We urge world governments to pursue a more vigorous policy to help Ukraine repel Russian aggression: increase material, financial, and military assistance and impose stricter sanctions against Russia, including halting economic activity in Russia. Imagine my shock when I saw that the security conference of the NATO Defense College, where I was invited as a guest, is sponsored by Philip Morris. A company that contributes the most taxes to the Russian military budget among all foreign companies and is a recognized sponsor of the war against Ukraine. This is the highest level of cynicism and evidence that it’s time to remind our international friends of the price we pay every day”, emphasized Hanna Hopko, Chair of the Board of the NGO “National Interests Advocacy Network “ANTS”.
The NATO Defense College organized the conference “Balkan and Black Sea Perspectives 2023: Structuring Strategic Resilience” in collaboration with Philip Morris International (PMI), the company that is the highest taxpayer in Russia among transnational companies and recognized by the National Agency of Ukraine on Corruption Prevention as an international sponsor of the war against Ukraine.
According to information published by the Kyiv School of Economics, PMI’s revenue in Russia in 2022 amounted to $7.9 billion, and the company paid $4.9 billion in taxes to the Russian budget. With this money, the Russian Ministry of Defense could have purchased approximately 4,900 “Kalibr” missiles, or 78 Su-35 fighters, or 1,089 T-90M tanks.
Additionally, Philip Morris International is closely associated with the top leadership of Russia: the current director of the Foreign Intelligence Service of Russia, former chairman of the State Duma of Russia, Sergey Naryshkin, was a member of the “Philip Morris Russia” Board of Directors for about 10 years.
“Tobacco company Philip Morris International ensures at least about 5 % of the terrorist country’s 2024 military budget. Simultaneously, this company sponsors and participates in a NATO Fund security conference, which is absurd and a whitewash of a blood-stained reputation. International organizations like Campaign for Tobacco-Free Kids, Smoke-Free Partnership, and others appealed to the NATO Secretariat to cease cooperation with PMI because the company’s activities pose a threat to international security”, noted Dmytro Kupyra, Executive Director of the NGO “Life”.
After numerous appeals from international organizations like Campaign for Tobacco-Free Kids, Smoke-Free Partnership, and from the National Agency of Ukraine on Corruption Prevention to NATO urging to cease cooperation with PMI, unfortunately, this tobacco company was not excluded from the sponsors of the conference. However, representatives of PMI were not allowed direct participation or speaking engagements at the conference.
The Ukrainian government should also take more active steps to encourage international companies to exit the Russian market and by no means engage in cooperation with such companies. The WHO Framework Convention on Tobacco Control recommends that governments and international organizations refrain from collaborating with tobacco companies since they produce harmful products that threaten global security — tobacco kills over 8 million people every year. In Ukraine, this number amounts to 130,000 people.
To preserve human capital, especially valuable in times of war, Ukraine needs to raise excise taxes on tobacco products to the EU level — 90 euros per 1,000 cigarettes, while today this figure is only 52 euros, and by 2025, according to the planned increase, it will be 70 euros per 1,000 cigarettes. Increasing excise taxes will help reduce the affordability of tobacco products, partially fill the gap in the state budget, and alleviate pressure on the healthcare system’s expenditures in the medium term.
To prevent attracting children and youth to smoking, it is also worth banning cigarette displays at the points of sale, a measure already implemented by over 50 advanced countries worldwide and yielding positive results. One of our state’s goals should be to ensure a healthy future for Ukrainians in a strong and independent Ukraine. For this, we must not allow tobacco companies to shape policies at the national and international levels or entrap youth in the nicotine trap, especially when such companies sponsor the war against Ukraine.
Photo: Ukrainу Crisis Media Center
Contact information: Olha Masna, media coordinator of NGO “Life”, olha.masna@center-life.org