Japan Tobacco will pay $400 to European Union
Japan Tobacco Company signed an agreement with European Union for 15 years on struggle against tobacco smuggling. In the context of this agreement, Japan Tobacco has to pay $400 million to EU for break in tobacco trade. In return EU countries refuse any pretensions to Japan Company. The agreement was not signed by Great Britain, which is intended to continue investigations of breaks committed by Japan Tobacco.
Besides, according to the document, Japan Company has to take measures on struggle against smuggling of tobacco production also on production of infringing cigarettes production. Clear profit of the third tobacco company in the world Japan Tobacco Inc. in the first half year 2007‐2008 reduced at 25,3%. Operational profit of the cigarettes company in the first half year 2007‐2008 reduced at 10,4% and amounted at $928 million in comparison with $1,03 billion got at first half year 2006‐2007.
Japan Tobacco is the third cigarettes company in the world. It was founded in 1898. Japan Tobacco produces such popular cigarettes brands as Mild Seven, also possesses the right on sale of cigarettes Camel, Winston and Salem outside USA. 50% of JT shares belong to the Japan government.