Tobacco Documents Online

Windsor House 50 Vicloria Street London SWlH 0NL Telephone 071-222 7979 Sir Patrick Sheehy 8 A t IND~/STR~ES D ! c 6th October 1992 President Leonid K~avchuk, President of the Ukrainian Republic, Ukraine, Kiev 252021, Vul. Bankover 11. Your Excellency, I have read in the press that you have taken an interest in foreign invest~lent in the tobacco industry in the Ukraine. As C]~alrman of B.A.T Industries I am writing to inform you of my Company's interest in making a very significant investment in the Ukraine and to request an early meeting with you so that I can explain our proposals to you and to hear your views on how we can most speedily implement these proposals. Notwithstanding the difficulties facing the Ukraine in the short and medium term furore, it is my strong belief that your country's economy has enormous potential. BAT is a long term investor in many countries overseas and we would like to be part of the Ukraine's future. In every country the tobacco business is an important industry - both to the population who require a regular supply of good quality products, and also to the government in light of the substantial tax revenue which the industry produces. Your government has recognised the need for foreign investment in the tobacco sector. I believe that BAT is well placed t~ supply the financial and technical investment needed, not simply in relation to cigarette production, but also in the development of the tobacco growing industry. For some months we have been working closely with Ukrtabakprom and the management of the three factories at Prilucky, Cherkassy and Monasterisk and together we have prepared detailed plans for the development of their businesses. These plans are concerned not only with increasing the manufacturing capacity in the factories and improving the quality of cigarettes so as to meet consumer demand and help satls~ the shortfall in Ukrainian domestic production, but also with the development of tobacco growing and processing which would reduce the need for tobacco imports into the country. B A !" Inclustr~es 01 c IncofDoralod ,n Londoo t'Jo 233112 Tele.~taph~c Address Ba znd LonUon SW! re ex 9 5 95

-2- B.A.T l~dustries is the world's most international cigarette manufacturer and has an unrivalled expertis~ in both manufacturing and the development of leaf growing and processing. We have much m offer, not only in terms of investment, but also in expertise and commitment to the development of a strong and thriving ~bacco industry in the Ukraine. Our discussions with the management of the factories and with Uk~bakprom have reached an advanced stage and, as I have said, at this time I would very much appreciate an opportunity to meet you to hear your views on the prospects for foreign investment in your country and the development of the tobacco industry. I look forward to meeting you and to discussing what I believe is a most exciting venture. Sir Patrick Sheehy Chairman & Chief Executive B.A.T Industries