March 15 (SeeNews) - UK-owned Imperial Tobacco Production Ukraine plans to close its branch in Moldova in April due to the difficult economic situation in the country, a company official told SeeNews on Tuesday.
Imperial Tobacco, however, will continue to sell its cigarettes on the Moldovan market through local distribution companies, the company's corporate and legal affairs director in Ukraine, Moldova and Caucasus countries, Oleg Strekal, commented for SeeNews.
The move is part of Imperial Tobacco's plans to optimise its business on the Moldovan market by benefiting from lower expenses and the implementation of a new product distribution and merchandising model, the official noted.
Moldova is going through an economic crisis, including a devaluation of the national currency, decreasing purchasing power of the population, growing excise rates and shrinking cigarette consumption, the official said, commenting on the reasons for Imperial Tobacco's pullout from the country.
The units of Imperial Tobacco in Ukraine - Imperial Tobacco Ukraine FIE and Imperial Tobacco Production Ukraine JSC - are among the largest taxpayers in Ukraine. Last year they paid 6.18 billion Ukrainian hryvnia ($230 million/207 million euro) of taxes and duties, up 37% from 2014, company data showed.
The production facility in Ukraine, the Kyiv Tobacco Factory, is one of the largest Imperial Tobacco manufacturing facilities in the world, founded in 1861.
(1 Ukrainian hryvnia = 0.034 euro)