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Lithuania: PM tries it on again

Lithuania is the westernmost of the three Baltic states—the others are Latvia and Estonia—and is now a member of the European Union. Remarkable progress has already been made since regaining independence after many years in the former Soviet Union. But while Lithuania appears to be thriving under democracy and a re-established market economy, it suffers the major disadvantage of being on the receiving end of attention from the tobacco companies.

Philip Morris (PM) has owned a factory in Klaipeda, in the north west of Lithuania, since 1994, the biggest tobacco factory in the Baltic states, where it makes cigarettes for Latvia and Estonia, as well as for local sales. In addition, its holding company, Altria, has a Kraft factory in Lithuania. Not surprisingly, PM has the largest share of Lithuania's cigarette market. Perhaps such relatively large operations and the need to try to persuade the Lithuanian government not to take . . . [Full text of this article]