Tag: Neman

  • EU Sanctions Belarusian Tobacco Firms

    EU Sanctions Belarusian Tobacco Firms

    Photo: Tobacco Reporter archive

    The European Union has imposed sanctions against Neman Grodno Tobacco Factory and Inter Tobako in Belarus, reports Interfax. The measures were announced in The Official Journal of the European Union as part of a larger package of sanctions to punish Russia and its allies for the war in Ukraine.

    The package also targets Russian oil exports, financial institutions and vehicle manufacturers whose trucks and cars have been used in the “special military operation.”

    The Newman Grodno Tobacco Factory was already subject to sanctions following the controversial re-election of Alexander Lukashenko and the regime’s subsequent crackdown on protests challenging the outcome in 2020.

    Accounting for 70 percent of domestic cigarette sales, Neman effectively has a monopoly on the Belarusian tobacco market. The United States says it is one of several entities that receive preferential treatment from the regime in return for providing funds to Lukashenko.

    The Neman factory has also been fingered as a major source of illicit cigarettes in Europe. Around 10 percent of the 5.5 billion cigarettes sold illegally in the U.K. annually are believed to have originated in Belarus.

    With the average price of a pack of cigarettes in Belarus running the equivalent of about $0.80 compared to $4.30 in Latvia and much higher in other parts of the EU, there is plenty of room for profit in smuggling.

  • Belarusian Cigarette Smuggling at New High

    Belarusian Cigarette Smuggling at New High

    Photo: Tricky Shark

    The number of Belarusian cigarettes smuggled through Lithuania is growing at a record pace, reports Belsat, citing figures from Lithuania’s Customs Department.

    In the first three quarters of 2021, Lithuanian law enforcement officers seized 328 million smuggled cigarettes, compared to 297 million in 2020.

    This year, 16.7 million cigarettes were seized on the railroad alone, twice as many as last year. Cigarettes were usually hidden in bulk cargoes, among fertilizers and crushed stone. The problem is exacerbated by the fact that there is no X-ray equipment at some stations.

    Illegal cigarettes account for a quarter of the cigarette market in Lithuania. Of all smuggled cigarettes, 84 percent were produced in Belarus.

    Belarus’ state-owned Neman factory has been fingered as a major source of illicit cigarettes in the EU. Around 10 percent of the 5.5 billion cigarettes sold illegally in the U.K. annually are believed to have originated in Belarus.

    In September, British American Tobacco in suspended the contract manufacturing of its brands at Neman, following international criticism for Belarus’ heavy-handed suppression of protests against the outcome of last year’s disputed presidential elections.

    Accounting for 70 percent of domestic cigarette sales, Neman effectively has a monopoly on the Belarusian tobacco market. Washington says it is one of several entities that receive preferential treatment from the regime in return for providing funds to Lukashenko.