PM · 10-Q · 2026Q2 · Full report
Russia Business and Asset Exposure
Philip Morris International Inc. · 2026-07-24 · Importance 58 · Surprise 42 · In source text
PMI’s Russian operations had approximately $5.6 billion of assets as of June 30, 2026, including approximately $2.8 billion of cash and cash equivalents held mostly in Russian rubles. PMI held a 23% equity interest in JSC TK Megapolis with a carrying value of $303 million as of December 31, 2025. PMI stated that a potential divestment could result in a material impairment because of Russian regulatory constraints, sanctions, and restrictions on realizing the business’s value.
Key facts
- In June 2024, the Russian government included TKM in the list of economically significant organizations that may be subject to forced localization. source
- On August 8, 2024, the Arbitrazh Court of the Moscow Region granted the forced localization of MDBV as requested by the Ministry of Industry and Trade on July 18, 2024. source
- MDBV’s shares in TKM were transferred to TKM and subsequently transferred to the Russian subsidiaries of its indirect shareholders during the fourth quarter of 2024. source
- As of June 30, 2026, our Russian operations had approximately $5.6 billion in total assets, excluding intercompany balances, of which approximately $2.8 billion consisted of cash and cash equivalents held mostly in local currency (Russian rubles). source
- In 2025, Russia accounted for around 9% of our total cigarette and heated tobacco unit shipment volume, and around 6% of our total net revenues. source
- Russia prohibited export of certain goods from Russia including tobacco-related production equipment and implemented countermeasures including restrictions on lending to foreign borrowers and repatriation of dividends. source
- Divestment of the Russian business would likely be subject to material impairment and our ability to fully realize value in the event of a divestment would likely be subject to material impairment. source
- MDBV was dissolved in December of 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | negative | probable | — | In June 2024, the Russian government included TKM in the list of economically significant organizations that may be subject to forced… |
| assets | negative | realized | — | On August 8, 2024, the Arbitrazh Court of the Moscow Region granted the forced localization of MDBV as requested by the Ministry of… |
| assets | negative | realized | — | MDBV’s shares in TKM were transferred to TKM and subsequently transferred to the Russian subsidiaries of its indirect shareholders during… |
| assets | unclear | realized | — | As of June 30, 2026, our Russian operations had approximately $5.6 billion in total assets, excluding intercompany balances, of which… |