Imperial Brands PLC (LSE:IMB) is in talks to sell its Russian assets and operations as the group tries to cut ties with the increasingly isolated country.
The tobacco maker employs 1,000 people in Russia in sales and marketing in a factory in Volgograd.
Russia and Ukraine accounting for around 2% of total revenue and 0.5% of operating profits.
Imperial Brands’ shares are down more than 11% since Putin ordered troops into Ukraine.
“We believe that, in the current circumstances, an orderly transfer of our business as a going concern would be in the best interests of our Russian colleagues,” the company said in a statement.
The company, which had previously suspended operations in Ukraine, will continue to pay the wages of Russian staff until a sale is completed.
Imperial Brands now expects net revenue growth of 0-1% this year, with limited impact on profitability given the minimal profit contributions by its Russian and Ukraine business.
Shares in Imperial Brands were down 1.2% at 1,531.50p in morning deals.