An excess of goods supplied to Ukraine allegedly helped the smuggling trade
Jump to full article: Slovak Spectator International Weekly (sk), 2005-10-31
Author: Magdalena MacLeod Spectator staff
Intro: SLOVAKIA has joined other European nations in a lawsuit against two tobacco concerns, RJ Reynolds and Japan Tobacco.
The decision by the Slovak cabinet to join the European Union alliance was motivated by "the alleged involvement in cigarette smuggling and money laundering" on the part of RJ Reynolds and Japan Tobacco, Mikulás Gera, the Finance Ministry's press officer, told The Slovak Spectator.
The Finance Ministry hopes for a greater chance to succeed by joining other countries of the European Union than by fighting its battle alone.
The lawsuit is being fought on United States soil under the Racketeer Influenced and Corrupt Organizations (RICO) legislation, which came into effect in 1970 to fight corporate crime.
The prosecution maintains that RJ Reynolds and Japan Tobacco knowingly supplied an excess of goods to countries bordering the European Union, where excise taxes comprise 80 percent of the retail price of cigarettes, thus aiding and abetting the smuggling trade.
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