Business news from Ukraine

Business news from Ukraine

Record tax growth for JTI Ukraine: excise tax brought in UAH 16.4 bln

JTI Ukraine, one of the largest companies on the market, paid UAH 21.2 billion in taxes to the state budget in the first half of 2025, which is 75% more than in the same period of 2024.

“The main factors behind the growth were legislative changes, in particular the increase in excise tax rates, as well as improvements in the company’s operating performance and changes in the exchange rate,” the company said in a press release on Monday.

According to the press release, excise taxes traditionally accounted for the largest share of tax revenues, amounting to UAH 16.4 billion, which is 81% more than in the first half of 2024.

It is noted that VAT payments increased by 73% to UAH 2.76 billion as a result of stable demand, adaptation to regulatory changes, and balanced cash flow management.

“Significant growth was also recorded in other areas: income tax (+45%), customs duties (+37%), single social contribution (+24%), personal income tax and military tax (+36%),” according to a press release quoting JTI Ukraine CFO Olga Sulitska.

The company added that in the second half of the year it plans to strengthen risk management while maintaining stability in tax and social obligations.

JTI Ukraine is part of Japan Tobacco International (headquartered in Geneva), the international tobacco business of the Japan Tobacco group of companies (headquartered in Tokyo). It has been operating in Ukraine since 1999 and is currently represented by two companies with over 800 employees: JTI International Company Ukraine, with its central office in Kyiv, and four regional offices and a factory in Kremenchuk (Poltava region), JTI International Ukraine.

JTI Ukraine manufactures products for both the domestic market and for export to nine countries around the world. The declared investments over 26 years of operation amount to over $433.7 million, with additional investments of $60 million planned for 2024–2026 in the category of tobacco products for electric heating (TPE).

According to YouControl, JTI International Company Ukraine increased its revenue by 37.7% to UAH 18.60 billion in the first half of this year, and its net profit by 15.7% to UAH 1.11 billion.

Revenue of JT International Ukraine grew by 61.8% in January-June this year, to UAH 4.74 billion, while net profit doubled to UAH 1.23 billion, according to YouControl data.

As reported, another major player in the tobacco market, Philip Morris Ukraine, previously reported a 17% increase in tax payments for January-June 2025, to UAH 28.9 billion (excise tax – UAH 22.9 billion, VAT – UAH 5.4 billion).

According to the Ministry of Finance, excise tax revenues in the first half of 2025 increased by 45.7% to UAH 132.7 billion.

 

, ,

JTI Ukraine to pay UAH 276 mln in dividends to shareholder

Tobacco manufacturer JTI Ukraine (Kremenchuk, Poltava region), a member of the Japan Tabacco Inc. group of companies, will pay dividends of UAH 276 million, according to a decision made by the general meeting on April 10.

“Dividends are to be paid in monthly installments within six months from the date of the decision. The method of payment of dividends is directly to the shareholder by transferring these funds by the company in US dollars to the shareholder’s cash account – JT International Holding B.V. (Netherlands),” the company reported in the information disclosure system of the National Securities and Stock Market Commission (NSSMC).

It is noted that the dividend payment period is set from April 26 to October 8 this year.

The amount of dividends in foreign currency to be paid will be determined at the commercial rate of the authorized bank on the date of purchase of foreign currency. In case of payment of dividends from own funds in foreign currency, the recalculation is carried out at the official exchange rate of the National Bank of Ukraine on the date of payment.

According to the YouControl system, JT International Ukraine increased its net profit by 8.0% to UAH 981.21 million in 2024, while its revenue increased by 17.0% to UAH 6 billion 748.22 million.

JT International Holding B.V. owns 100% of the company.

, ,

JTI Ukraine has a new CEO

The meeting of shareholders of the tobacco company “JTI Ukraine” (JT International Company Ukraine, Kyiv) decided to satisfy the application for resignation from the post after September 30 of its current CEO Paul Holloway, instead of him Svetlana will be appointed for two years Sharamok.
The shareholders made the corresponding decision on September 20, follows from the company’s message on the information disclosure system of the National Central Design Bureau of Financial Markets.
It is specified that Holloway took office as CEO of JTI Ukraine on January 1, 2018 and will leave it on September 30. In turn, Sharamok was accepted to the specified position for a period of two years – from October 1, 2022 to October 1, 2024.
According to JTI, from April 2021 to September 2022, Sharamok worked as the marketing director of JT International Company Ukraine, and she also held the position of country manager for the Caribbean region at JTI Corporation.
“JTI Company Ukraine” is part of the international group of companies Japan Tabacco Inc. (JTI). In Ukraine, she owns the Kremenchug tobacco factory (Poltava region).
The most famous brands of “JT International Ukraine” are Sobranie, Winston, Camel, Glamor and LD.
Products are sold in Ukraine and were exported to 22 countries before the war.

,

JTI UKRAINE: AEO STATUS HOLDERS SEE FIRST PREFERENCES IN CUSTOMS CLEARANCE

Companies with the status of an authorized economic operator (AEO) at the moment cannot yet take advantage of all its opportunities, since bylaws and algorithms for the implementation of preferences granted to AEO status holders have not been developed.
Director General of PrJSC JT International Ukraine (Kremenchuk, Poltava region) Viktor Ivanov told Interfax-Ukraine agency on Tuesday about the influence of this status on the activities of the tobacco manufacturer JTI Ukraine, the first and only holder of the AEO status in the country.
“The AEO status has not yet become a real competitive advantage, although there is indeed an image advantage in relations with the customs authorities. Even before the AEO status was obtained, we had a constructive dialogue and effective cooperation with the customs. Now, there are new mutual opportunities. We are waiting for customs simplifications begin to be fully realized,” Ivanov said.
Legally, possession of the status of the AEO, as a kind of “certificate of trust” to the enterprise from the side of customs, provides it with significant advantages and simplifications in its work. In particular, the out-of-turn registration of customs declarations, a simplified declaration procedure by the customs authority, the use of a specially defined traffic lane at a checkpoint, etc.
Ivanov said that this status provides exclusively logistical advantages, and affects production indirectly through the acceleration of logistics (customs clearance and delivery of necessary materials, spare parts, tobacco, etc.). “In terms of logistics, in recent months we have felt that customs clearance of our goods is a priority and comes first. Also, the number of occurrences of automatic risks when importing/exporting our goods has decreased, therefore, the number of more thorough procedures for checking or inspecting goods has decreased. We believe that it was the AEO status that made it possible to reduce the number of automatic risks,” the director general said.
Ivanov said that apart from the right of priority customs clearance of goods and reduction of automatic risks during customs clearance, the company did not feel any other changes. So, for example, the announced separate traffic lanes for the transport of companies with the AEO status at customs points have not yet been equipped.
“As far as we know, there are still no bylaws, the algorithms for the implementation of these simplifications have not yet been developed. According to our information, they are still under development. Therefore, we cannot use all the advantages that the AEO status gives,” the director of JT International Ukraine said.
According to him, to improve the situation, it is necessary to accelerate the development and implementation of bylaws that provide benefits for companies with AEO status.
Ivanov also said that JTI Ukraine has repeatedly received offers from various organizations to participate in roundtables or seminars to share the experience of preparing for the assessment and the very assessment of compliance with the AEO criteria. Customs representatives also took part in these events, shared their experience and talked about the aspects that need to be paid attention to when submitting an application and self-assessment questionnaire, and the assessment procedure.
As reported, the AEO authorization program was launched in Ukraine in August 2020.

, , , ,