Philip Morris Offers Russia A Smoke

<BR>The start of construction has been announced of a Philip Morris tobacco factory representing $335m investment.<BR>The cermony of laying the foundations to Eastern Europe's largest tobacco factory took place to the sound of balalaikas and the vague sight of fireworks, barely visible in the blue sky. Boris Nemtsov and Governor Vladimir Yakovlev failed to turn up, although managers from Citibank's branch were seen inexplicably wandering amongst the guests. Vadim Gustov was laid a foundation stone with a silver ceremonial trowel he later claimed as a souvenir.<BR>Construction will begin on 50 hectares of land in the Lomonsovsky region of Leningrad oblast, which has been leased for 100 years, and should be completed by the end of 1999. The factory will make about 25 billion ciagarettes annually, including Marlboro, Bond Street, L&M and Chesterfield brands, and employ 800, mainly local, workers. <BR>Hans Flueri, president of Philip Morris Companies, Inc. in Eastern Europe, said that the choice to build was largely dependant on the excellent results of Philip Morris-Neva, a factory in the city which manufactures cigarettes from imported materials (the new factory will cover the entire production process).<BR>Thanks to an investment agreement reached between Philip Morris and the oblast administration, the company is released from all budget taxation for three years. A similar agreement was reached with the Lomonosovsky region's administration.