Philip Morris Ukraine ready to resume cigarette exports
Philip Morris Ukraine is considering resuming cigarette exports from Ukraine, particularly to geographically close countries, CEO Maksym Barabash announced during a roundtable discussion titled "Key Issues of Ukraine's Economic Recovery and the Role of Government and Business Structures in the Process" held at the company's new production facility in Lviv region.
"In terms of domestic market potential, there's no room for significant growth in cigarette production in Ukraine – it's a relatively stable, saturated market. Just like before the war, the real growth opportunity lies in exports. We're assessing which countries might be viable destinations," Barabash stated.
He recalled that prior to Russia's full-scale invasion, the company's Kharkiv plant was producing 20 billion cigarettes annually, with half of that volume exported, including to markets as far away as Japan.
"Due to the war, restoring exports to Japan will likely be difficult and take a considerable amount of time. But that doesn't mean we're not looking at other options. Our initial focus is on exporting to countries in close geographical proximity," the CEO added.
As reported, Philip Morris was forced to shut down its Kharkiv facility at the onset of Russia's full-scale invasion. The company subsequently invested $30 million in launching a new production site in Lviv region, which opened in May 2024. The plant features five production lines and an annual capacity of 10 billion cigarettes, reaching full planned output this year.
In addition, the company invested another UAH 60 million in building a dedicated shelter on the premises, capable of accommodating 170 people, including factory staff and local residents.
According to data from YouControl, Philip Morris Ukraine increased its revenue by 86.7% in 2024, reaching UAH 21.62 billion, while reducing its net loss by 30.1% to UAH 1.20 billion.
