Business news from Ukraine

Business news from Ukraine

Philip Morris Ukraine has invested UAH 60 mln in construction of shelter in Lviv region

29 May , 2025  

Philip Morris Ukraine has opened a new modern shelter on the territory of its factory in the Lviv region, in which it has invested about UAH 60 million, according to a press release from the company.

“In the current circumstances, the safety of our people is not just a requirement of the times, but also our responsibility. (…) We continue to invest in Ukraine, and these investments demonstrate our long-term strategy as an investment ambassador and our support for the economy in the context of martial law,” said Maxim Barabash, CEO of the company.

The shelter is designed for 170 people and will provide protection for both factory workers and local residents during air raids or emergencies. It fully complies with all applicable safety requirements and standards and is designed to provide comfortable accommodation for people for up to 48 hours.

The space is equipped with a ventilation system using explosion-proof valves and air conditioning, an alarm and fire extinguishing system with backup power supply, a water supply and sewage system, a heating system, radio broadcasting, telephone communication, and video surveillance, places for rest and seating, and water and food supplies for long stays. The shelter takes into account the needs of people with disabilities. The premises include a medical corner, sanitary facilities, shower rooms, and a kitchen area.

Construction of the shelter began in September 2024 after the launch of the factory, in which the company invested $30 million. Prior to this, employees used a modernized shelter on the territory of the Lviv city community, in which the company invested about UAH 1.3 million.
Philip Morris was spun off from Altria in 2008 and is one of the world’s largest tobacco manufacturers. The company’s revenue for 2023 increased by 10.7% compared to 2022, to $35.2 billion. The report noted that Ukraine accounted for about 2% of total sales in volume terms and 1% in monetary terms.

In 2022, PMI reduced shipments to the Ukrainian market by 30.1% to 11.07 billion cigarettes and tobacco sticks due to the war, but in 2023, it managed to increase shipments of finished products by 8.4%, including 14.9% in the fourth quarter. In October 2023, the company announced that it had restored its share of the Ukrainian market to 24%. In 2024, Ukraine’s figures were excluded from PMI’s quarterly reports.

In addition to cigarette production, PMI develops and manufactures smokeless products—electrically heated tobacco products (e-cigarettes), nicotine-containing POD systems, and nicotine products for oral use. Sales of smokeless products accounted for 39% of PMI’s total net income in the first quarter of 2024 and 38% in the third quarter.

Philip Morris Ukraine has been operating in the Ukrainian market since 1994 and has invested over $750 million in the Ukrainian economy during this time. Since the start of the full-scale invasion, it has allocated over UAH 400 million to humanitarian projects.

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