Imperial Brands, formerly Imperial Tobacco Group, has announced the transfer of its Russian business to investors based in Russia.
The deal is subject to the finalisation of the registration of the transaction with local authorities, which is expected to take place shortly, the company added.
The transaction aligns with the group's previously announced intention to divest its entire Russian operation to provide the best outcome for its 1,000 Russian employees.
Imperial Brands has estimated a non-cash write off of around £225 million for this transaction, which it expects to be treated as an adjusting item.
Previously, the group had stated that it expected 'a relatively small impact' on its constant currency adjusted operating profit, reflecting the limited profit contribution of the two markets.
Imperial Brands Exits Russia
The tobacco giant's operations in Russia include a sales and marketing business and a factory in Volgograd.
The company has pledged to 'continue to support' its Ukrainian colleagues and their families, including transport and accommodation to enable them to escape the areas affected heavily by the war, and resettlement assistance for those who have left Ukraine.'
The tobacco group has announced no change to its previous guidance due to its exit from Russia and suspension of its Ukraine operations.
In 2021, Russia and Ukraine represented in total around 2% of net revenues and 0.5% of adjusted operating profit for the group.
In November of last year, Imperial Brands reported a 0.7% increase in revenue in its full year to 30 September, with CEO Stefan Bomhard saying the company is eager to build on what has been a year of "important progress and significant change" for the group.