Tobacco industry sets foot in war-torn Ukraine

Tobacco company Philipp Morris International has announced the construction of a new €27 million factory in western Ukraine that it expects to be operational by the beginning of 2024.

The work for the new factory is expected to start this month the company noted that approximately 250 would be employed, prioritising those who were left jobless after another factory was destroyed during the war in Kharkiv.

The location in the Lviv region in western Ukraine was proposed by UkraineInvest, Ukraine’s investment promotion office, created in 2016 to attract foreign direct investment.

A tobacco industry report published last month found that Ukraine is among the top five countries in the European region with the highest consumption of illicit tobacco products.

Massimo Andolina, President Europe Region at PMI, noted that the investment is a “powerful signal” to other international investors to trust Ukraine’s economy and future.

In late June, at the Ukraine Recovery Conference in London, more than 400 companies pledged to boost their investments in Ukraine’s economy.

The World Bank estimated in March that the cost of Ukraine’s reconstruction during the first year of Russia’s aggression would reach up to €383 billion.

“Ukraine has shown that it is possible to rebuild during active conflict, and it is vital that post-war planning should move to an advanced stage,” wrote recently in an op-ed for EURACTIV Goran Buldioski, the acting executive director of Open Society–Europe and Central Asia.

Last February, PMI drew criticism from public health NGOs after it donated €1.8 million to earthquake-hit Turkey.

The NGOs accused the company of “hidden” lobbying activities. For its part, PMI rejected the accusations saying it’s money to help people in need.

Activists fume at tobacco industry for donating to earthquake-hit Turkey

The European anti-tobacco lobby has urged the international community to help earthquake-hit Turkey avoid a €1.8 million donation from Phillip Morris International (PMI) highlighting “hidden” lobbying activities. For its part, PMI rejected the accusations saying it’s money to help people in need.