TI JanFeb2016 • TPI Q1

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Tobacco Products International TPI 7 M oscow–The plant for the production of Phillip Morris heat-not-burn product, IQOS, the so-called PMI 'heat sticks,' may be launched in Russia, and possibly with state support. This news followed a statement by the country's Deputy Prime Minister for Social Affairs, Olga Golodets who instructed the Russian Ministry of Health and the Ministry of Industry to consider the social, health and financial aspects of the project. "Federal agencies should consider the possibility of implementing the project given the high investment potential involved with the possible localization of products based on the electric heating of tobacco," Golodets stated at a special government meeting. Representatives of the Russian office of PMI confirmed that Russia will be one of the markets where the sale of 'heat sticks' should be launched soon, though the company has refrained from commenting officially on the construction of the plant. According to Sergei Slipchenko, PMI's vice- president for corporative affairs (Russian office) the cost of producing individual iQOS systems in Russia should amount to RUB 7,000 ($90) each, while the cost of a 'heat sticks' package (20 pieces) will be RUB 150 ($2). This means that in the Russian market, the cost of producing the product will be the cheapest available. Russia Considers Viability of Embracing PMI's Heat-Not-Burn Technology May Support Domestic Production of Heat Sticks » BY VLADISLAV VOROTNIKOV

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