Support The Moscow Times!

Foreign Tobacco Faces Ban on Charitable Donations

Young people are frequently seen smoking in the streets of Russian cities. Igor Tabakov

Charity representatives said Tuesday that new legislation being considered by the Health and Social Development Ministry could forbid international tobacco companies from making philanthropic donations.

The total loss to Russian charities would be the $6 million donated by the three biggest multinational tobacco giants active in the market — British American Tobacco, Philip Morris and Japan Tobacco International, said Tatyana Zadirako, head of charitable foundation United Way of Russia.

Restrictions already in place on forms of philanthropy that tobacco companies can engage in — they are forbidden to donate to causes involving children and sports — mean that the money they commit is skewed toward projects that have less appeal for other corporate donors.

It is very hard to attract funds to projects that seek to help the elderly, the homeless and the mentally ill, Zadirako said. "Everybody wants very pretty projects that can be turned around very quickly." Tobacco companies give particularly large sums to initiatives that support old people.

"Helping the elderly is a very important part of philanthropy, particularly considering the fact that the population is aging fast," said Maria Salutskaya, leader of the 50-Plus project.

According to Philip Morris' web site, the company gives $2 million a year to philanthropic projects in Russia. British American Tobacco, or BAT, refused to disclose its annual corporate social responsibility budget, but said some points in the legislation were "redundant."

"In particular, we think that the ban on corporate philanthropy and the support of cultural events is unwarranted," said BAT Russia's corporate affairs director Alexander Lioutyi.

Editor-in-chief of the Business and Society journal Tatyana Bachinskaya, who helped organize a round table on the subject, told The Moscow Times that a blanket ban on tobacco companies' charitable donations was governmental hypocrisy. The state collects huge tax revenues from the sector. "If you don't like tobacco companies or their money then make the whole industry illegal," she added.

United Way's Zadirako, who said she was speaking on her own initiative and not on the request of tobacco companies, said there was confusion among civil servants over terms. "Philanthropy, advertising and sponsorship are far from being the same things."

Russian tobacco companies do not support charities, added Zadirako, who described them as "untransparent" and "lawless."

The new law is a part of a raft of laws currently under consideration by the Ministry of Health and Social Development. They also include a proposal to ban smoking indoors in 2014, as has been enforced across much of Europe. About 60 percent of Russian males smoke.

Ministry adviser Irina Nikulina told Rossiiskaya Gazeta last month that there was no intention to ban philanthropy by tobacco companies. "We are proposing to ban sponsorship and the promotion of cigarettes," she said.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more