PM · 10-Q · 2026Q3 · Full report

Russia Business and Asset Exposure

Philip Morris International Inc. · 2026-10-23 · Importance 27 · Surprise 24

Following Russia’s invasion of Ukraine, the U.S., EU, UK, Switzerland, Canada, Australia, New Zealand, Singapore, South Korea, Japan, and other jurisdictions imposed sanctions and export controls, including restrictions affecting tobacco-production materials, IQOS devices, and related services. PMI’s Russian operations held approximately $5.6 billion in assets as of September 30, 2026, including $3.1 billion in cash and cash equivalents held mostly in rubles; a divestment could result in material impairment because of Russian regulatory constraints and international restrictions. PMI also holds a 23% interest in Russian distributor JSC TK Megapolis, with a carrying value of $0.3 billion, or $0.9 billion including cumulative foreign currency translation losses. The filing states these developments may materially adversely affect PMI’s business, results, cash flows, and financial position, and may result in impairment charges.

Key facts

• As of September 30, 2026, PMI's Russian operations had approximately $5.6 billion in total assets, excluding intercompany balances, including approximately $3.1 billion in cash and cash equivalents held mostly in Russian rubles. source
• For the nine months ended September 30, 2026, PMI's Russian operations accounted for around 7% of total net revenues. source
• For the nine months ended September 30, 2026, PMI's Russian operations accounted for around 7% of total net revenues and Ukrainian operations accounted for around 1%. source
• In June 2024, Russia included TKM on its list of economically significant organizations potentially subject to forced localization; on August 8, 2024, a Moscow-region court granted the forced localization of MDBV, and MDBV was dissolved in December 2025. source
• PMI holds a 23% equity interest in Russian distributor JSC TK Megapolis, with a carrying value of $0.3 billion as of September 30, 2026, or $0.9 billion including related cumulative foreign currency translation losses. source
• PMI says a divestment of its Russian business would likely result in a material impairment of its ability to fully realize the business's value. source
• PMI says a divestment of its Russian business would likely result in material impairment of its ability to fully realize the business's value. source
• Deprivation of rights in or access to PMI's Russian or Russia-related assets could cause material impairment and deconsolidation of its Russian business. source