Opposition members accuse Belarusian regime of involvement in tobacco smuggling

An online video denounces a system of organized smuggling with tobacco multinationals that directly benefits Belarusian President Alexander Lukashenko.

Belarusian journalist Yevgeny Medvedev, who is in exile, has published an investigative report on the online news channel Nexta entitled "Zolotoe dno" (Gold Mine), in which he denounces the system of corruption and smuggling allegedly set up by the President and his entourage.1This system would involve in particular a cigarette smuggling network, which would be supplied by the main tobacco multinationals and from which the representatives of the regime would benefit.

An international smuggling network

With supporting documents and testimonies, the report claims that tobacco manufacturers with factories in Belarus – Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco International (JTI) – supply raw tobacco. This is then processed on site into cheap cigarettes in large quantities, some of which are used to supply clandestine networks in Russia and the European Union. This traffic is estimated at several hundred million dollars and directly benefits Alexander Lukashenko and his entourage. Sums of cash are, among other things, used to pay members of the police and special forces.

To support his statements, Yevgeny Medvedev said that he had turned to tobacco multinationals and asked them to stop all cooperation with Belarus. "We actively monitor the European Union (EU) and US sanctions lists to be alert to sanctions on governments, companies and individuals.", Philip Morris retorted through the media.

The case was notably raised in Switzerland, which is home to JTI's headquarters and PMI's operational headquarters. It places Switzerland in a delicate situation, as the country consolidated its diplomatic relations with Belarus in February 2020 with a view to developing economic partnerships, before the latter was singled out for its repression of protests during the summer of 2020.2].

Tobacco industry denies, EU sanctions

The question of the involvement of tobacco multinationals in the illicit cigarette trade is recurrent[3]. Despite their statements, renewed these days in an online video campaign in favor of better control of illicit trade, tobacco manufacturers have been prosecuted on numerous occasions for having directly supplied tobacco smuggling networks. The procedures initiated by the European Commission and several European states against several tobacco multinationals were only extinguished after significant financial negotiations.4].

Belarus's responsibility in tobacco smuggling to the European Union (EU) has already been highlighted. The EU estimates that 10% of the contraband tobacco circulating on its territory comes from Belarus.1]. The tobacco seizures made by Europol in November 2020, worth €36 million, were mostly attributed to Belarusian origin. In the end, tens of millions of euros in taxes escape EU countries. The role of Switzerland, the most tobacco-friendly country in Europe, in this trafficking remains to be established.

In power since 1994, President Lukashenko is strongly contested in his country. Along with nearly 80 Belarusian figures, he was the subject of targeted economic sanctions on June 21, 2021, from the EU, relayed by the United States, Canada and Great Britain, for his management of the domestic crisis and in retaliation for the diversion of a plane on May 23.5Among the seven economic sectors (arms, fertilizers, etc.) targeted by this procedure, tobacco is prominent.

Keywords: Smuggling, Illicit Trade, Belarus, Switzerland, Politics ©Generation Without Tobacco

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[1] Huber J, Swissinfo, Belarusian opposition attacks tobacco giants based in Switzerland. Published on June 22, 2021, accessed on June 24, 2021. [2] Monbelli A, Swissinfo, Belarus: a new partner already embarrassing for Switzerland. Published on August 18, 2020, consulted on June 24, 2021. [3] Génération Sans Tabac, Decryptions, Complaint highlights Philip Morris' role in illicit trade. Published on January 4, 2021, consulted on June 24, 2021. [4] Génération Sans Tabac, Communication operation: PMI in the fight against illicit trade. Published on June 23, 2021, consulted on June 24, 2021. [5] Stroobants JP, Le Monde, European Union agrees on tough sanctions against Belarus. Published June 22, 2021, accessed June 24, 2021. National Committee Against Smoking |