2023-09-07 06:24:46
British American Tobacco announced on Thursday that it had reached an agreement to sell its operations in Russia and Belarus to a consortium led by members of BAT Russia’s management team.
The maker of Camel and Lucky Strike cigarettes said in March 2022 it would seek a withdrawal from Russia as Western companies withdrew en masse following sanctions imposed by the United States, European Union and other countries following Russia invaded Ukraine.
At the time, the company controlled just under 25% of the Russian tobacco market.
BAT, which was previously in talks with its local distributor for a sale, said it has formally reached an agreement to sell the business to a consortium led by its local management team, in compliance with local and international laws.
“Once the agreement is completed, BAT will no longer have a presence in Russia or Belarus and will not derive any financial benefit from ongoing sales in these markets,” the company said in a stock market statement, adding that it will expected the transaction to be completed within the next month.
BAT remains confident that it will achieve its objectives for the full year. The company made a £957 million write-down related to the transfer of its business to Russia in July 2022.
BAT said that under the agreement, the employment conditions of its personnel in Russia and Belarus will remain comparable for at least two years following the transaction is finalized.
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