The Member of the European Commission responsible for budget M.Schreyer confirmed that the discussions have been ongoing for several months but are not yet finalized. She confirmed that the negotiations contemplated broad areas of cooperation by Philip Morris International with European law enforcement agencies that would build upon Philip Morris International's existing procedures to ensure that its tobacco products are sold appropriately and lawfully. Included are customer oversight policies and provisions for the tracking and tracing of products manufactured by Philip Morris International.
The draft agreement would contemplate substantial payments over a number of years. These payments, contrary to certain press interpretations, are not and should not be viewed as fines or recoveries. The funds could be made available to fund anti-counterband and anti-counterfeit measures.
The agreement would resolve all disputes between the European Commission, the Member States, and Philip Morris International relating to these issues.
The draft agreement is still subject to the approval of the Commission, the Member States and the Board of Directors of Philip Morris International.
Due to the confidential nature of the discussions, and because an agreement is contingent upon the approvals mentioned above, no further comment will be made before, nor will the parties make the draft agreement available prior to receipt of all requisite approvals.