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'A tactical market' / Interview with Denis Gourinovich, corporate relations manager at BAT in Belarus. 

In Russia BAT has three factories and it is one of the three most powerful companies in the industry with very strong brands, such as Kent, Vogue, Pall Mall, and Yava Gold. In Ukraine we have one factory, and in 2002 we became market volume leader. Our brand Priluki Osoblivy is currently the best-selling brand in Ukraine.

BAT has invested more than US$ 300 million in Uzbekistan and enjoys the dominant market share there. Comparing Russia, Belarus, Ukraine and Uzbekistan on the basis of business conditions for international companies we can say that the most favourable market situation is in Russia. Market reforms are well advanced there and existing conditions stimulate the development of business activity, including tobacco companies. In Ukraine the state is attempting to control the market by means of tax policy and regulations which sometimes contradict previously issued laws. In the mid nineties the Ukrainian government increased excise rates, which provoked an increase in illegal imports of cigarettes.

This, in turn, led to multi-million dollar losses for the state budget as sales of local manufacturers fell sharply. In Belarus and Uzbekistan business environments are similar, as both economies are experiencing a significant degree of interference by state authorities.

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