PM · 10-Q · 2026Q3 · Full report

Russia and Ukraine Conflict Impact

Philip Morris International Inc. · 2026-10-23 · Importance 50 · Surprise 24

For the nine months ended September 30, 2026, Russian operations generated around 7% of PMI’s total net revenues and Ukrainian operations around 1%. PMI says Russian authorities impose complex conditions and approval requirements on any divestment, while international restrictions also constrain operations; a divestment or loss of access to Russian assets could result in material impairment or deconsolidation. The continuing conflict also brings risks from sanctions, export bans, financial and currency restrictions, and possible punitive tax changes affecting PMI and third parties in Russia.

Key facts

• Strikes in Ukraine disrupted PMI's supply chain and logistics infrastructure in certain locations, and PMI expects the disruption to affect operating income in 2026. source
• PMI's Kharkiv factory remains suspended; it invested over $30 million in a new Lviv-region facility, where local production began in April 2024. source
• For the nine months ended September 30, 2026, PMI's Ukrainian operations accounted for around 1% of total net revenues. source
• PMI says the war in Ukraine has had and will continue to have a material adverse impact on its business, results of operations, cash flows, and financial position, and may result in further impairment charges. source
• PMI says the war in Ukraine could disrupt regional and global supply chains and inhibit timely sourcing of materials and services needed to make and sell its products. source
• PMI says the Ukraine conflict may heighten risks to its smoke-free business growth targets, third-party manufacturing resources, and revenue losses from counterfeiting and similar illicit activities. source