
Philip Morris Ukraine has a long history of investment and growth in the country. The company has been present in Ukraine since 1992.
In the early 2000s, Philip Morris Ukraine invested heavily in expanding its operations and improving its manufacturing capabilities.
This investment paid off, and the company's sales and market share began to grow steadily.
By 2010, Philip Morris Ukraine had become one of the leading tobacco companies in the country, with a significant market share.
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History of Investment
Philip Morris has been investing in Ukraine since 1994, a remarkable 29 years of commitment to the country.
The company has invested a significant amount of money in Ukraine, approximately $700 million.
Philip Morris has created over 1300 jobs in Ukraine, which is a substantial contribution to the country's economy.
The company's investment in Ukraine has also had a positive impact on the country's tax revenue, with PMI Group companies in Ukraine paying over UAH 25.3 billion in taxes in 2022.
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Philip Morris began operating in Ukraine in 1994 after acquiring a tobacco factory in Kharkiv, marking the beginning of its long-term investment in the country.
In 2003, the company invested in the construction of a new $100 million factory in the village of Dokuchaevske, Kharkiv region, which became operational in 2006.
The new factory was an important export hub for PMI products, supplying over 20 countries, including major markets like Japan and Egypt.
Despite the challenges posed by the full-scale invasion in 2022, Philip Morris found a way to ensure a steady supply of products to the Ukrainian market by setting up imports from eight factories around the world.
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Ukraine Operations
Philip Morris has been operating in Ukraine since 1994, making it one of the country's largest investors, taxpayers, and employers. The company has invested around $700 million in Ukraine and created over 1,300 jobs.
In 2003, Philip Morris began constructing a new factory in Dokuchaevske, Kharkiv region, which became operational in 2006. The factory was an export hub for PMI products to over 20 countries before being suspended due to the ongoing hostilities in the region.
The company has found ways to adapt to the situation, setting up imports from eight factories worldwide and starting production at the Imperial Tobacco factory in Kyiv in August 2022.
Invests in Ukraine Since 1994

Philip Morris has been investing in Ukraine since 1994, marking almost 30 years of operation in the country.
The company has invested about USD 700 million in Ukraine, creating more than 1300 jobs.
Philip Morris International is a multinational tobacco corporation with products in over 180 countries.
The company has been operating in Ukraine for almost 30 years and remains one of the largest investors, taxpayers, and employers in the country.
In 2022, PMI Group companies in Ukraine paid more than UAH 25.3 billion in taxes to the budgets of various levels.
The total amount of investments during the time of operation in Ukraine was about $700 million.
Philip Morris began operating in Ukraine in 1994 after acquiring a tobacco factory in Kharkiv.
The company constructed a new $100 million factory in the village of Dokuchaevske, Kharkiv region, which became operational in 2006.
Prior to the full-scale invasion, the new factory was an export hub for PMI products to more than 20 countries.
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The start of Russia's full-scale invasion in 2022 forced the company to suspend the operation of its factory near Kharkiv due to ongoing hostilities in the region.
The company quickly found a way out by setting up imports to Ukraine from eight factories of PMI worldwide.
In August 2022, Philip Morris started producing cigarettes under its own brands at the Imperial Tobacco factory in Kyiv.
Ukraine Factory Hits Full Capacity
Philip Morris' new factory in Ukraine has reached full capacity, with five production lines installed and operating at a planned capacity of 10 billion cigarettes per year.
The factory, located in the Lviv region, started operating in May 2024 and has been producing products under the company's brands since then.
Philip Morris invested $30 million in the launch of the factory, creating 250 jobs and relocating employees from the company's Kharkiv facility.
The company has also completed a contract with a partner company in Ukraine, which has been producing products under Philip Morris' brands for over two years.
Philip Morris plans to invest an additional 60 million UAH in a full-fledged large shelter on the factory's territory, which will provide a safe and comfortable space for people.
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Invests $30M in Ukraine Production Facility

Philip Morris invested $30 million in the launch of a new factory in the Lviv region, Ukraine. This factory has five production lines with a planned capacity of 10 billion cigarettes per year.
The factory has already reached full capacity, allowing Philip Morris to fully provide the Ukrainian market with its own products. This is a significant achievement, especially considering the challenges the company faced due to the ongoing conflict.
The company created 250 jobs at the factory, with employees from the Kharkiv facility being fully relocated. This is a testament to Philip Morris' commitment to its employees and the Ukrainian economy.
In addition to the factory, Philip Morris plans to invest an extra 60 million UAH in a full-fledged large shelter on the factory's territory. This shelter will provide a safe and comfortable space for people to stay.
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Product and Services
Philip Morris Ukraine offers a range of products, including Marlboro, L&M, and Parliament cigarettes, as well as other tobacco products.
Their product portfolio is designed to meet the diverse preferences of Ukrainian smokers.
The company's products are widely available in Ukraine, with a strong distribution network that includes retail stores and online platforms.
Philip Morris Ukraine also offers a variety of services, including customer support and loyalty programs.
Corporate Responsibility
Philip Morris Ukraine has shown remarkable corporate responsibility, especially during the war. The company organized the evacuation of over 1600 people, including employees and their families, from hazardous cities like Kharkov and Kiev.
They provided financial support to their employees who were affected by the war. In fact, the company's mother organization, Philip Morris International, donated 10 million dollars to humanitarian needs in Ukraine.
This generous donation allowed them to purchase 22 ambulances, an X-ray machine for a hospital in Ivano-Frankivsk, and essential items for Ukrainians. Philip Morris Ukraine also funded the purchase of two reanimobiles for transporting severely injured patients.
The company's commitment to social responsibility is evident in their support for the "WomanMobile" project, a diagnostic vehicle for medical check-ups of women in de-occupied areas. This initiative aims to address the lack of medical and social infrastructure in these regions.
In addition, employees from Philip Morris International's offices in 80 countries participated in the "Project with a Heart" corporate charity project, raising over $550,000 for Ukrainian aid.
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Challenges and Controversies
Philip Morris Ukraine has faced its fair share of challenges and controversies. The company was hit with an organized mass media attack in 2024 through Telegram channels, questionable information resources, and individual public figures. This media attack was fueled by the company's involvement in the investigation of counterfeit cigarette production at five Ukrainian tobacco factories.
In 2019, the Antimonopoly Committee of Ukraine fined Philip Morris, along with other major tobacco producers, a total of 6.5 billion hryvnia. Philip Morris was specifically fined almost 1.2 billion hryvnia.
The Antimonopoly Committee of Ukraine found that the tobacco producers, including Philip Morris, had reduced the number of direct contracts with other distributors in favor of the distributor company "Tedis Ukraine" through coordinated actions in 2011-2012. However, in 2011, "Tedis Ukraine" had received permits from the Antimonopoly Committee to concentrate and engage in coordinated actions.
A court later overturned the fines imposed on Philip Morris Ukraine and its sales and distribution subsidiary in 2021, after they filed a complaint.
Frequently Asked Questions
Does Ukraine produce tobacco?
Yes, Ukraine produces tobacco, with approximately 1,580 tons produced in 2022 on 700 hectares of agricultural land.
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