- Welcome to Armenia! You are here to attend Yerevan Dialogue, which is bringing together state actors, the private sector, civil society, and other stakeholders to tackle some of the most pressing challenges in the world and, more specifically, in Armenia and our region. What drew PMI to participate, and what are your key takeaways?
- Thank you for the warm welcome I’ve received here. The main reason why we are participating is that we have an important presence in Armenia with our research and development (R&D) center, in parallel with our business. We have been operating in Armenia for many years, and we are interested in the development of the country and the region. In general, we participate in many global forums. I find such sessions to be very productive when it comes to better understanding the complexity in which we are living, whether it is geopolitics, economy, and business, which helps me make better decisions.
I still need to reflect on some of the sessions from Yerevan Dialogue, but I really liked the fact that people showed a genuine interest in interacting with each other, sharing opinions and learning. I was impressed by how broad the topics were and, in some cases, how deep the discussions went. It’s rare that one finds solutions during the sessions itself but sharing perspectives helps a lot. We had a session that explored AI and how global integration and sovereignty come together in this context. There was some very interesting interaction between a couple of ministers and private sector players, each bringing their own perspectives within this ecosystem. It was very insightful when it comes to the direction in which this world is going to move.
- From your experience globally, do you believe that such forums can be effective at transitioning from discussions to concrete policy outcomes? Do you have any specific examples from your past experience when this happened?
- It’s difficult to connect policy changes with specific discussions. There is definitely a role for these discussions when it comes to shaping policy. Let’s use the AI example. Any kind of disruptive innovation, especially of the magnitude of AI, causes turbulence when it comes to regulation. All countries are trying to manage innovations so the regulators do what they believe is best, but trying to control things too much can slow down innovation, while relaxing controls come with other risks. So there is a fragmentation in regulation. Being in these forums and understanding how each country is approaching the situation can help regulators develop more sound policies and guide companies when it comes to navigating these waters.
Our industry is a relatively heavily regulated one. There has been a lot of debate around the emergence of new categories of smoke-free products, even though science has shown them to be a better alternative for smokers who would otherwise continue to smoke. . Many countries have progressed, recognized the science behind these products, and brought them to the consumers, gradually making cigarettes obsolete. But there are also countries that have fallen behind. Such discussions and debates help understand how each country is dealing with the situation.
- From your experience leading external affairs at PMI, what does genuinely effective public-private dialogue look like, and where does it most often break down?
- It’s easy to pinpoint the main things that break effective public-private partnerships – bureaucracy and instability. In order for someone to invest, you need an environment that is manageable and predictable. Armenia is a nice case of good practices. Besides our commercial activity here, the R&D center we run focuses on AI and analytics. Armenia offers a good recipe for this kind of work – a good pool of talent in engineering and mathematics, regulatory clarity, and an ecosystem of universities and experts with whom we can connect and work on science. With this ecosystem, our relationship is mutually beneficial, because we gain from each other’s presence. Although Armenia is a small country, it provides a good environment for us, and our growing presence here is a good example of a successful public-private partnership.
- Multinational corporations are sometimes viewed with skepticism by some state actors and civil society. How do you build the kind of trust that makes real dialogue possible, especially in markets that are newer or more complex?
- This is an interesting question and is, in fact, a key topic for discussion in society. I can understand the skepticism because sometimes the very size of a company can make people wary. Companies may take advantage of their strong position. But there are also misperceptions that people have, which may either come from past experience or, in some cases, simply dogmatic thinking. The solution is simple – transparency, dialogue, discussion. We need to sit at the same table and talk about the practices that are considered good and the ones that are bad, and then find solutions. This is how we do it. We are innovating better products and we are investing in the scientific substantiation.. This science is open and, over the last decade, has been reviewed and validated by third parties, i.e. independent scientists. The main thing we do is to invite dialogue. When all sides keep their eyes and ears open, we have progress.
- The Yerevan Dialogue theme of “democratic resilience” raises questions about the responsibilities of large corporations with regard to the societies in which they operate. Where do you think that responsibility starts and ends?
- The company and its leadership should define how the company approaches responsibility. In our case, we have a very specific focus on the product. Cigarettes are a regulated product and are consumed within a certain legal framework, but we recognize the problems on the public health side. Responding to these challenges, we created better products that are backed by scientific evidence. We know that we have to work with the scientific community and then with society as a whole to explain what we are doing and why we are doing it. This focus on better products is a core part of our responsibility. We want to minimize the negative impact we have on our environment and we have a number of initiatives that are recognized around the world when it comes to sustainability. It’s a multidimensional effort – our contribution to society, our workforce, and the improvements in our products – which shows our consistent commitment to the topic.
Our contribution to society also goes beyond our commercial activity. I am a big supporter of education and providing the right foundation for young people to gain the knowledge and skills necessary for success. I have seen with my eyes what we are doing in PMI R&D laboratories in the Polytechnic University and in the Engineering City. There is continuous engagement with the academic community, and this has a multiplier effect in society because it creates new value for innovative products and it improves the skills of the people involved, also bringing new value to the economy.
- PMI is in the middle of a very public transformation toward a smoke-free future, essentially redefining the company's identity and purpose. Reflecting on that experience, what lessons have you learned about how large legacy companies need to evolve in today’s world?
- First of all, it should be said that this can be done, even if the company is on a very large scale. More importantly, if you have the right purpose, it should be done. Every organization is now operating in a world that is changing at a very fast pace, so we should regularly review where we stand and how we are moving forward. In our case, we had the additional questions around the product that we are manufacturing and selling. For many companies, there are changes in geopolitics and supply chains that force reviews of operating models.
In our experience, there are many important elements that go into a successful transformation, but two are vital – values and purpose. Everything else can be managed. People can come and go, but they need to embrace the same values that the company celebrates. A purpose is crucial, even if it is a moonshot. For us, we were bold in our vision and courageous in our decision making, which allowed us to focus our resources on the development and commercialization of better products. We faced challenges early on, but we continuously improved, we gradually leveled up our science, developed higher quality products, and better explained to the outside world what we were doing. This is a transformation that we already consider a success. We are not fully there yet – at this point, 43% of our net revenues are coming from the smoke-free products and they are now in 107 countries around the world. There is still a lot of work to do but we have made our case – these products are widely accepted by consumers and there is very solid science behind them.
- So do you see this objective of a smoke-free future within reach?
- Yes! It’s a question of joint efforts of the business, government, civil society and media. Each stakeholder has their own share of the responsibility in this story. It’s one thing to wish that cigarettes never existed, but it is a completely different situation when you don’t allow smokers to have access to better options. Armenia is among the world’s countries which embrace the smoke-free products. As we know, every big change in the world takes time. The trajectory is clear and we are confident that we are on the right side of history.
- Speaking of big change, we live in very interesting times – AI is expected to cause a lot of change in many areas. Presumably, it will change a lot inside your company. But do you think AI will somehow impact your relationships with your stakeholders in any way?
- Yes, for sure. For us, AI Growth is not just a tech rollout — it’s a cultural shift. As an innovation leader in our industry, we are open to innovation in other spheres as well. We focus on using AI where it clearly makes a difference—helping us work more efficiently, make better decisions with data, and improve the customer experience. While AI will change some tasks and jobs over time, our main goal is to support people, make their work better, and help our teams build the skills they’ll need in the future. In that context, it will most probably also influence the way regulators take decisions, which means that it will impact the way in which we work with our stakeholders or with the public at large.
- You built your career largely through commercial roles before moving into corporate affairs. How has that background shaped the way you approach external affairs and stakeholder engagement? How do you switch between your “commercial hat” and putting yourself in the shoes of a regulator, environmental activist, or human rights defender?
- You have to work with different sets of skills, that’s for sure, but this is natural in any position of leadership. The work of any general manager has a considerable portion of external affairs included in it, so I have built up this experience through those commercial roles. I’m happy to have this exposure to external stakeholders because I see the impact of the work that I do. It’s an extremely important job to be able to materialize this vision of a smoke-free future, and this is a key part of my interaction with stakeholders.
- You've operated across very different markets – Greece, Switzerland, Southeast Europe, and now globally. What's the most surprising thing you’ve learned about how different societies and governments relate to big business?
- There is a lot of divergence from one country to the other. The reasons for this can be historic, or they can be rooted in the current context. Some countries are more transactional, others seek to avoid risk, yet others prefer to have long stages of dialogue before advancing. A global experience helps ground you and opens you up to the different perspectives that exist around the world. The experience I had in the global south helped me better understand how I should behave in Europe. It has made me a better leader and, more importantly, a better person.