(Reuters) – Philip Morris International Inc (NYSE) reduced its full-year earnings outlook on Thursday. This was due to the reduction of Russian operations, higher cost and a slow recovery in Asia duty-free.

Following the cessation of sales of some Marlboro or Parliament cigarette products in Russia, the tobacco company took 3 cents per shares for war damage in Ukraine.

Moscow’s invasion of Ukraine has prompted the company to reconsider its options and cancel product launches. It also suspended planned investment plans in Russia.

Philip Morris reported first-quarter earnings of $2.32Billion or $1.50 per Share, down 3.6% from the previous quarter, after accounting for 3-cent charges.

Russia generated revenue of more than $1.8 billion last year for Philip Morris, around 6% of the New York-based company’s global sales.

Philip Morris also reduced its projection for 2022 adjusted earnings to between $5.45-$5.56. It was previously between $6.12-6.30. Soaring costs have been a major factor in corporate earnings across all industries.

A separate Reuters analysis of business registries revealed that Igor Kesaev (a longtime Russian business partner of Philip Morris) had been sanctioned by Europe for his support of Moscow’s invasion of Ukraine.