In March 2022, British American Tobacco plc (LON:BATS) announced that the ownership of our business in Russia was no longer sustainable in the current environment and that our intention was to transfer our business. BAT has now formally entered into an agreement to sell its Russian and Belarusian businesses in compliance with local and international laws.
The buyer is a consortium led by members of BAT Russia’s management team which, upon completion, will wholly own both businesses. Post completion, these businesses will be known as the ITMS Group.
Throughout the transfer process one of our key priorities has been the interests of our colleagues in Russia and Belarus. As part of the agreement, their employment terms will remain comparable to their existing British American Tobacco terms for at least two years post-completion.
We anticipate that the transaction will complete within the next month, once certain conditions have been satisfied. Upon completion, BAT will no longer have a presence in Russia or Belarus and will receive no financial gain from ongoing sales in these markets.
BAT remains confident of delivering its Full Year guidance as set out at our Half Year results on 26 July 2023.
Notes to Editors
· British American Tobacco’s operations in Russia include a head office in Moscow, 75 regional offices and a manufacturing facility in St. Petersburg. BAT also has an office in Belarus.
· At 30 June 2023, on a constant currency basis, Russia and Belarus accounted for approximately 2.7% of Group revenue, and approximately 2.5% of Group adjusted profit from operations.
