Philip Morris International explained why importing cigarettes from Poland is cheaper than producing them in Ukraine.

Philip Morris International reported that importing cigarettes from Poland is 10% cheaper than producing them in Ukraine.

The Deputy General Director for Corporate Affairs of Philip Morris Ukraine, Mykhailo Polyakov, spoke about it during NV dialogues about the future 'Business and War'.

According to him, in May 2024, Philip Morris International opened a factory in the Lviv region. And recently, the company compared production costs at this factory and at the factory in Krakow.

"We are now operating in a cluster where Poland is the main market. Production in Lviv for Ukraine is more expensive than production in Krakow and its subsequent import to Ukraine," Polyakov stated.

He explained that this happened due to the presence of an additional reserve of employees in Poland, as well as a lower risk of absenteeism in Krakow. In addition, during air raid alerts, the tobacco factory in Lviv is not working. The issue of electricity supply remains relevant in Ukraine as well.

Polyakov also noted that the company's employees are not willing to violate the curfew, even if they have special permits. He pointed out that Philip Morris Ukraine does not have such a privilege.

"All this creates additional costs. Therefore, it is 10% cheaper for us to produce cigarettes in Poland and import them to Ukraine," he emphasized.