British American Tobacco (BAT) business in Russia came under the control of BFI Holding from United Arab Emirates (UAE). About this with reference to data from the Unified State Register of Legal Entities reports “Kommersant”.
The Arab company, owned by BAT’s top management, received divisions of BAT-SPb JSC and MUMT JSC, which produced Kent and Java, Dunhill, Lucky Strike and Rothmans, as well as glo tobacco warmers and neo sticks. After completion of the sale, the company will operate under the name ITMS Group
According to Artem Tamaev, a partner in the Better Chance corporate law practice, to transfer business from foreign investors to friendly entities, a company is often registered in the UAE, since this jurisdiction remains accessible to Russians and provides access to the foreign banking system.
In 2022, BAT was one of the three largest tobacco producers and held 23.6 percent of the market. The company was only ahead of Philip Morris International (31.1 percent) and Japan Tobacco International (35.6 percent), which continued to operate in Russia.
BAT has been operating in Russia since 1991, producing its own tobacco products under the Kent brands, Vogue, “Java Golden” was launched already in 1994. In the spring of 2022, after the start of the conflict in Ukrainemanufacturer stated about the suspension of investments in the country, and in the winter of 2023 – about the intention to leave Russia and Belarus and transfer the business to local management. As of July 2022, losses from this decision assessed at 957 million pounds sterling or 1.2 billion dollars.https://musicnewsfirst.com/