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British American Tobacco News

Time: 2021-09-17

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British American Tobacco announces suspension of continued cooperation with Belarusian state-owned tobacco factory Neman

On September 16, according to Inews, British American Tobacco has suspended the production of its branded products in a state-owned factory in Belarus because the factory is accused of facilitating cigarette smuggling and helping the country's authoritarian regime to raise funds.


The multinational company stated that it has stopped ordering tobacco from Grodno Tobacco Factory Neman, which has long agreed to produce some of the best-selling brands of British American Tobacco for the Belarusian market.


Belarus has been severely criticized by the international community for its severe suppression of protests against the results of last year's controversial presidential election.


Last month, the United States announced that it would impose sanctions on individuals and entities accused of supporting Belarus’ de facto dictator Alexander Lukashenko and his cronies to provide funds to maintain the violent repression.


Neman accounts for 70% of domestic cigarette sales and actually monopolizes the Belarusian tobacco market. Washington said it was one of several entities that received preferential treatment from the regime, and these entities provided Lukashenko with funds in return.


According to the U.S. Treasury Department, "This sponsorship network has maintained (his) violent regime at the expense of the Belarusian people.


Inews quoted British American Tobacco as saying: "After the recent implementation of international sanctions on several Belarusians and entities including GTF Neman and restrictions on tobacco manufacturing materials, we have taken measures to ensure that all activities meet the requirements.


"BAT has suspended its work with GTF Neman and has not ordered the production of its products from the factory.


However, the company added that due to sanctions, it is now unable to complete the planned on-site independent audit of GTF Neman's workplace conditions, where there were accusations that workers involved in anti-government protests violated human rights.


The Neman factory has also been cited as the main source of illegal cigarettes in the EU. It is believed that about 10% of the 5.5 billion cigarettes illegally sold in the UK each year originated in Belarus.


There is no indication that British American Tobacco is aware of any illegal trade. The company said it has "strong controls" to prevent its products from entering the black market.


lnews quoted a British American Tobacco spokesperson earlier this year: "We are convinced that British American Tobacco Belarus has adopted all relevant British American Tobacco policies and procedures in combating illegal trade to ensure the consumption of GTF Neman and British American Tobacco in the Republic of Belarus. Products produced by trademarks.



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