PM · 10-Q · 2026Q2 · Full report

Russia and Ukraine Conflict Exposure

Philip Morris International Inc. · 2026-07-24 · Importance 58 · Surprise 42

Following Russia’s invasion of Ukraine on February 24, 2022, the U.S., EU, UK, Switzerland, and other jurisdictions imposed extensive sanctions and export controls affecting Russia’s financial, industrial, and trade activities. PMI’s Russian operations held 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; any divestment would likely involve a material impairment. PMI’s Ukrainian operations held approximately $0.6 billion of assets, while production at Kharkiv remained suspended and a new Lviv facility representing more than $30 million of investment began local production in April 2024. PMI stated that these developments have had or may have a material adverse impact on its business, cash flows, and financial position and may result in impairment charges.

Key facts

• As of June 30, 2026, our Ukrainian operations had approximately $0.6 billion in total assets, excluding intercompany balances. source
• These developments above have or may have a material adverse impact on our business, results of operations, cash flows and financial position, and may result in impairment charges. source
• Following the start of the conflict in Ukraine on February 24, 2022, extensive economic sanctions and export controls in relation to Russia were introduced by multiple countries including the U.S., the EU, the UK, Switzerland, Canada, Australia, New Zealand, Singapore, South Korea and Japan. source
• Production at our factory in Kharkiv remains suspended. source