Philip Morris Ukraine is exploring options for compensation after a Russian missile strike on its factory in Kharkiv on January 30, 2026. This incident marks the third attack on the company’s operations since the onset of the full-scale invasion.
The recent missile attack destroyed a warehouse at the Kharkiv facility, resulting in a fire that spanned over 5,000 square meters and caused significant structural damage. Initial estimates of the losses are around $16 million, which includes the building and the raw materials stored within.
Prior to this incident, the company experienced two other attacks: one in May 2022 that hit the administrative building at the Kharkiv site, and another in October 2025 when drone debris struck a warehouse in Lviv region.
According to the State Emergency Service of Kharkiv, the assessment of the damage is ongoing. Sergey Kalnoochenko, a company representative, noted that no insurance provider is willing to cover the military risks in Kharkiv to the extent required for a tobacco company, which is a common practice in wartime conditions.
As a result, the losses incurred are expected to remain as company losses. Kalnoochenko mentioned that they are considering compensation through available international mechanisms.
Since the beginning of the full-scale invasion in February 2022, Philip Morris Ukraine has suspended production in Kharkiv due to safety concerns. Before the war, the facility produced 20 billion cigarettes annually, supplying both the domestic market and exporting to over 20 countries, including Japan, Israel, Georgia, Egypt, and EU nations.
Following the production halt in April 2022, the company shifted to importing products into Ukraine and temporarily moved production to a partner facility in Kyiv.
Philip Morris Ukraine is assessing damage and potential compensation after a recent missile strike on its Kharkiv facility, marking the third attack since the war began. The company faces significant financial losses, with no insurance coverage available for military risks in the region.