PM · 10-Q · 2026Q2 · Full report

Russia Ukraine Conflict Impact

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

In 2025, Russia represented approximately 9% of PMI’s total cigarette and heated tobacco unit shipment volume and 6% of total net revenues, while Ukraine represented approximately 2% and 1%, respectively. PMI continues to face Russian regulatory constraints, potential legal action, asset deprivation or nationalization, and restrictions affecting a possible divestment; any divestment or loss of access could result in material impairment or deconsolidation. The conflict may also cause sanctions, export bans, currency restrictions, supply-chain disruption, and further impairment charges affecting PMI’s business, cash flows, and financial position.