British American Tobacco (NYSE:BTI) PLC (LON:BATS), a London-based cigarettes, tobacco, and other nicotine products manufacturer, has finalized the sale of its operations in Russia and Belarus on Thursday. This move follows the imposition of Western-led sanctions on Russia in response to its invasion of Ukraine.
Earlier this month, BAT (LON:BATS) announced the sale of these businesses to a consortium led by members of BAT Russia's management team. The newly formed entity, now known as the ITMS Group, will wholly own both businesses. BAT emphasized that it will no longer have any presence in Russia or Belarus and will not receive any financial benefits from ongoing sales in these markets.
The company stated that the sale was carried out in compliance with local and international laws and followed the receipt of all necessary approvals. All trademarks currently in use will remain under the ownership of the Russian business, ensuring consumers continue receiving high-quality products under familiar brands.
BAT's Russian office press service said, "Throughout the transfer process, same as after it, among the new owner’s key priorities are uninterrupted business processes, ensured employment of the staff and the implementation of the investment plan approved by the governmental subcommittee."
The completion of this sale is part of a larger trend seen since February 24, 2022, when Russia launched its invasion of Ukraine. Numerous multinational companies have either exited or announced plans to leave Russia as the US and other Western allies imposed multiple sanctions on Moscow.
As for BAT's stock performance, its current price in London stands at 2,666.50 pence, marking a 12-month decrease of 22%. In Johannesburg, the stock is priced at ZAR 628.42, showing a drop of 9.4% over the past year.
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