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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Your support makes all the difference.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.
We have initiated the process to rapidly transfer our Russian business in full compliance with international and local laws
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.