Japan Tobacco International (JTI) has reaffirmed its long-term commitment to Ukraine, sustaining investment, expanding exports, and supporting employees and communities despite the disruptions of war. Since entering Ukraine in 1999, JTI has invested about $440 million, including $38 million during 2022–2025, and continues to build production and innovation capacity.
Tax contribution and market role
In the first half of 2025 alone, JTI Ukraine transferred ₴21.2 billion in taxes to the state budget — 75% higher y/y — driven by excise increases, stronger operations, and currency effects. The company employs over 800 staff across offices and its factory in Kremenchuk, positioning itself as a key taxpayer and private-sector employer.
Investment strategy
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Product innovation: €60M planned through 2026 to expand the Ploom heated tobacco brand, now available in 3,500 retail outlets and online.
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Production modernisation: Launch of the Integrated Work System (IWS) at the Kremenchuk plant has cut downtime, improved quality, and boosted flexibility.
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Energy efficiency: Projects to reduce reliance on external energy sources while aligning with global sustainability goals.
Exports revival
Before the full-scale war, Kremenchuk supplied 22 global markets, with $120M in export revenue. Despite heavy disruptions, JTI restored production to 3B+ cigarettes for export in 2024, serving 9 countries in 2025 versus just 4 in 2023 — signalling recovery of foreign trade capacity.
Social and community support
Since 2022, JTI has allocated ₴500M+ to employees, veterans, IDPs, and communities. Programs include support for Superhumans rehabilitation projects, demining in Kharkiv with the Swiss FSD, elderly care with Caritas, and local urban renewal in Kyiv and Kremenchuk. JTI Ukraine ranks 5th in the Corporate Equality Index, with strong employee benefits, training, and relocation support.
Policy challenges
Executives stress that Ukraine’s shadow tobacco market (16.2% in April 2025) remains the biggest threat to legal industry growth and state revenues. Without stronger enforcement and consistent rules, the budget could lose ₴25B annually. JTI calls for tougher action against illegal producers, streamlined regulation, and better institutional coordination.
Investment angle:
JTI’s resilience highlights Ukraine’s ability to host large-scale international investors even under wartime conditions. The company’s ongoing expansion in heated tobacco, energy efficiency, and exports demonstrates the market potential for long-term investors provided that Ukraine continues to strengthen the rule of law, reduce the shadow economy, and ensure predictable regulation.
