Ukraine's tobacco factories more than doubled exports in the first half of this year compared to the same period last year, with shipments flowing mostly to other former Soviet republics
Ukraine’s tobacco factories more than doubled exports in the first half of this year compared to the same period last year, with shipments flowing mostly to other former Soviet republics.
Exports of Ukrainian-made cigarettes rose to 3.7 billion in the first six months of this year , from just 1.7 billion in the first half of last year, according to Ukrtabak Association. Dmitry Redko, spokesman for the United States’ R.J. Reynolds, owner of the Kremenchug tobacco factory, said Ukrainian tobacco producers fill niches in the former Soviet republics, with about a half of Ukraine’s total tobacco exports destined for the Russian market.
R.J. Reynolds has more than tripled exports from the country to 1.18 billion cigarettes in the first half this year, with Monte Carlo and Magna Classic being the company’s biggest export brands. Redko said his company has invested some $26 million in Ukraine. He said Ukrainian tobacco makers have raised sales abroad, despite a 5 percent tax to the Pension Fund they have to pay on exporting their products.
Redko said the dramatic increase in Ukrainian exports is in part caused by the manufacturers’ shift to producing filter cigarettes following an influx of cheap contraband filterless cigarettes. He said smuggled cigarettes account for about 15 percent to 30 percent of domestic consumption.
Others, such as Germany’s Reemtsma and U.S’ Philip Morris, also saw their exports soar.
