Imperial Tobacco to transfer its assets in Russia to local legal entity to circumvent sanctions – MP Zhelezniak
The British concern Imperial Brands Plc, which includes Imperial Tobacco, intends to transfer its assets and the right to conduct operations to a legal entity registered in the Russian Federation to circumvent sanctions and isolation from international companies caused by the invasion of Russian troops in Ukraine.
"Imperial Tobacco is transferring its assets and operations in the Russian market to a local legal entity. This is the company that has clearly announced the termination of activities in Russia and the shutdown of the plant," MP Yaroslav Zhelezniak wrote on his Telegram channel on Tuesday.
Zhelezniak did not specify the name of this Russian legal entity.
The politician said that this "transfer" of assets looks like an attempt by a foreign company to circumvent international sanctions against the aggressor country of the Russian Federation in continue to sell tobacco products in it and make a profit on the market of this country.
Zhelezniak recalled that on March 9, Imperial Tobacco "suspended" all operations in Russia, including halting production at its plant in Volgograd and halting sales and marketing activities in its market.
As reported, Imperial Brands, after the start of the Russian aggression, suspended work in Ukraine to ensure the safety of 600 of its employees.
Russia and Ukraine are relatively small markets for the group, accounting for about 2% of revenue and 0.5% of adjusted operating income in 2021.
Imperial Brands Plc, which includes Imperial Tobacco, produces cigarettes under Davidoff, Gauloises, JPS, Fine and West trademarks.