British American Tobacco prepares exit from the Russian and Belarusian markets and outlines future steps
British American Tobacco, a leading global producer of tobacco products, has announced plans to complete the sale of its business units in Russia and Belarus by the end of 2023. The company’s own publication confirms this timeline and the intention to transfer ownership of the Russian and Belarusian operations to new owners within the year. The move is described as part of a broader strategy to realign the company’s footprint in response to evolving regional conditions and corporate priorities. (Source attribution: British American Tobacco corporate communications, 2023)
Earlier communications indicated that the reassignment of these units would wrap up during 2023. The company notes that the process involves careful management of ongoing operations and staff impacts as the business transitions to new ownership structures. Management communications emphasise maintaining employee welfare and continuity for customers and suppliers during the transition. (Source attribution: BAT announcements, 2023)
In late July, reports cited a company briefing estimating a loss of around one billion pounds related to exiting the Russian market. The figure reflects the financial costs associated with winding down operations, including asset impairment, restructuring, and the broader strategic repositioning away from the region. (Source attribution: RIA Novosti reporting on BAT briefing, 2023)
Previously, in March, British American Tobacco announced a pause in its investments in Russia and confirmed it would suspend operations there. Management stressed that safeguarding employee well being remained a top priority during this period of heightened uncertainty. The statements underscore BAT’s commitment to responsible action and clear communication with its workforce as the company reframes its regional strategy. (Source attribution: BAT statements, 2023)
In a separate policy discussion within the Russian parliament, some lawmakers advocated for the nationalization of tobacco trade in the country, arguing that reliance on Western partners could pose strategic risks. A spokesperson from the political bloc suggested that without domestic control, cigarettes imported from abroad might be used as a leverage in ways that could threaten public health and economic stability. The dialogue highlights a broader geopolitical context influencing corporate decisions and the regulatory environment for tobacco products in Russia. (Source attribution: State Duma discussions, 2023)