• June 24, 2024

PMI Boosts Investment in Ukraine

 PMI Boosts Investment in Ukraine
Photo: Taco Tuinstra

Philip Morris International will launch the latest version of its IQOS Iluma heat-not-burn device in Ukraine, reports Interfax. The debut had been delayed in the wake of Russia’s military invasion.

“It is another proof of our support to the economy of Ukraine in the difficult times alongside our investing in the factory in the Lvov region,” Philip Morris Ukraine General Director Maxim Barabash was quoted as saying.

In order to meet anticipated demand, PMI has opened 40 stores in 24 cities, launched express shipping across Ukraine and established 120 recycling stations across the country accepting used products for reprocessing or eco-disposal.

“Philip Morris launched the first IQOS tobacco-heating system in 2016. Since then, about 1.3 million of adult smokers in Ukraine abandoned cigarettes and chose our companies’ smoke-free alternatives,” said Roman Ivanov, head of PMI Ukraine’s smoke-free products department. “We will continue developing our brand retail and testing new formats of our commercial infrastructure in 2024.”

PMI says it has invested more than $700 million in Ukraine since starting operations there in 1994. In February 2022, following Russia’s attack, the company suspended the operations of its factory in Kharkov and started importing products from eight PMI factories outside Ukraine while partnering with another international manufacturer in Ukraine.

The company plans to launch a new, $30 million factory in the Lvov region in the second quarter of 2024.

PMI held a 24 percent share of the Ukrainian cigarette market in October 2024, up from 14 percent after Russia’s invasion but still short of its 28.5 percent share before the conflict.