British American Tobacco to withdraw from Russia over its invasion of Ukraine
The Lucky Strike owner reduced its sales forecasts for the year as a result of plans to offload the Russian operation, which employs 2,500 people.
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British American Tobacco (BAT) is to offload its Russian business due to the country’s invasion of Ukraine.
Shares in the London-listed firm dropped after it reduced its sales forecasts for the year as a result of its withdrawal.
The company, which owns brands including Pall Mall and Lucky Strike, said it will continue to pay its 2,500 workers in Russia.
It comes after a raft of consumer firms, including rival tobacco giant Imperial, halted their production and sales in Russia due to the war.
BAT told shareholders on Friday it had concluded a review of its Russian operation and recognised it is “no longer sustainable in the current environment”.
In a statement, the company said: “Today, we have initiated the process to rapidly transfer our Russian business in full compliance with international and local laws.
“Upon completion, BAT will no longer have a presence in Russia.”
The group revised its trading guidance for 2022, saying it now expects to deliver group revenue growth of between 2% and 4% for the financial year.
It previously predicted growth of between 3% and 5% for the year.
Shares in the company closed 1%, or 32p, lower at 3,068p.
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