Cabinet set to address concerns of cigarette manufacturers "shortly", Ukrainian PM says

Last week, the government met with representatives of the sector to discuss an action plan to resolve the situation.

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The Cabinet of Ministers is planning to shortly address concerns earlier voiced by tobacco product manufacturers over the recent changes to the Ukrainian legislation, which resulted in their intention to halt capacities across Ukraine.

"Last week we held a meeting with all the largest tobacco companies in Ukraine, talked with them, heard their problems, and agreed on how we will address them shortly, step by step. So, I believe the issue will be resolved," Prime Minister Oleksiy Honcharuk told one of Ukraine's TV channels.

At the same time, the prime minister did not specify how exactly the Cabinet will address the issues that arose.

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As UNIAN reported earlier, on October 4, the Verkhovna Rada adopted a bill establishing a trade margin on cigarettes for wholesale and retail trade at 7% and 13% of the maximum retail price.

On October 9, the world's largest manufacturers of tobacco products announced their intention to close down their factories in Ukraine if said legislative changes enter into force.

Since October 11, the largest Ukrainian cigarette manufacturer, British American Tobacco International, has halted production indefinitely at its capacities in Pryluky, Chernihiv region.

The company noted that the legislative initiatives proposed by the deputies establishing the trade margin make production unprofitable.

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