Imperial Brands has announced the transfer of its Russian business to investors based in Russia, subject to finalisation of the registration of the transaction with local authorities.

The transaction, which is expected to take place shortly, aligns with Imperial’s previously announced intention to divest its entire Russian operation as a going concern in order to provide the best outcome for its 1,000 Russian colleagues. Imperial’s operations include a sales and marketing business, and a factory in Volgograd.
“We continue to support our Ukrainian colleagues and their families, including with transport and accommodation to enable them to escape the areas most heavily affected by war, and resettlement assistance for those who have left Ukraine,” Imperial said in a press release.
“There is no change to our previous guidance on the financial impact of our exit from Russia and suspension of our Ukraine operations.” In FY21, Russia and Ukraine represented in total around 2 per cent of net revenues and 0.5 per cent of adjusted operating profit. In addition, Imperial estimates a non-cash write off of around GBP 225 million for this transaction, which Imperial expects to be treated as an adjusting item.