Ukrainian association of tobacco and alcohol makers and distributors, SOVAT, issued statistics showing a 3.6 per cent decline in tobacco manufacturing over the first six months of the year. 

In January-June 2006, 57 billion cigarettes were produced by local tobacco plants, vs 55 billion a year before. However, experts argue that last year’s record cigarette output (120 billion pieces) was largely accounted for by the industry’s uncertainty about taxation regime that was changed twice in one year. In the first six months of the year 2006, PM confirmed its leadership on the market by making 18 billion cigarettes and was followed by Reemtsma/Imperial (12.5 billion), BAT Priluki (9 billion), JTI Ukraine (7.6 billion) and Liggett-Ducat Ukraine (6.9 billion pieces). BAT and Liggett-Ducat have reduced output by 19.5 and 26.5 per cent correspondingly, whereas JTI, Ukrainian Tobacco Company (Monastyriysk) and Reemtsma/Imperial posted an increase by a respective 18.8, 18.1 and 15.1 per cent. (vt)