British American Tobacco said today it had entered into a deal to sell its Russian and Belarusian businesses to a consortium led by members of BAT Russia's management team.
The maker of Camel and Lucky Strike cigarettes said in March 2022 it would look to exit Russia as Western companies pulled out en masse amid sanctions imposed by the US, European Union and others following Russia's invasion of Ukraine.
The company controlled just under 25% of the Russian tobacco market at the time.
BAT had previously been in talks with its local distributor over a sale.
It said it had now formally entered into an agreement to sell the business to a consortium led by its local management team, in compliance with local and international laws.
"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," it said in a stock market announcement, adding it expects the transaction to complete within the next month.
BAT remains confident of delivering its full-year guidance, it continued. The company took a £957m impairment related to the transfer of its Russian business in July 2022.
BAT said as part of the agreement, the employment terms of its staff in Russia and Belarus will remain comparable for at least two years following completion of the deal.
