Imperial Brands today announced the transfer of its Russian business to investors based in Russia, subject to finalization of the registration of the transaction with local authorities, which is expected to take place shortly.
The transaction aligns with the company’s desire to divest its entire Russian operation as a going concern in order to provide the best outcome for its 1,000 Russian employees.
Imperial Brands’ Russian operations include a sales and marketing business, and a factory in Volgograd.
“We continue to support our Ukrainian colleagues and their families, including with transport and accommodation to enable them to escape the areas most heavily affected by war, and resettlement assistance for those who have left Ukraine,” the company wrote in an update.
Imperial Brands said its previous guidance on the financial impact of its exit from Russia and suspension of our Ukraine operations remains unchanged.
In fiscal year 2021, Russia and Ukraine represented in total around 2 percent of Imperial Brands’ net revenues and 0.5 percent of adjusted operating profit. The company anticipates a non-cash write off of around £225 million ($293.78 million) for this transaction, which it expects to be treated as an adjusting item.