BAKU, Azerbaijan, July 6. In an interview
with Trend News
Agency, Yuriy Gordok, Managing Director of Philip Morris
International for the Caucasus Region, spoke about the
transformation of the smoke-free alternatives market, the
principles of science-based regulation, protecting minors from
access to nicotine products, and why PMI chose Baku to host its
international Technovation forum.
On the Role of the Caucasus and Market
Transformation
The Caucasus is undergoing a profound transformation, moving
toward what once seemed an unimaginable future. We have been
investing in the region for more than twenty years, and about ten
years ago we introduced the world's first product in its category
here. At the same time, the Caucasus is not an isolated case.
The number of countries making rapid progress in tobacco harm
reduction—embracing scientifically substantiated alternatives,
recognizing the differences between these products and conventional
cigarettes, and developing appropriate public policy—is growing
around the world. This trend is inevitable and increasingly
evident, including here in the Caucasus.
Azerbaijan is developing at an extraordinary pace. Looking at
what the country has achieved over the past decade is truly
impressive: the transformation of its economy, rapid
digitalization, and its emergence as a strategic connector not only
within the region but also globally. This is fundamentally
important. Azerbaijan's economy is evolving beyond its traditional
dependence on the energy sector.
From the outside, Azerbaijan may still appear to be primarily an
energy economy. However, the government's actions—and the way they
are perceived internationally—demonstrate an ambitious effort to
diversify beyond energy. These efforts are becoming increasingly
visible. Azerbaijan is a country focused on the future and
innovation, with the potential to play a global role in advancing
innovation.
The country is becoming increasingly prominent on the
international stage and is embracing the global transformations
taking place around the world.
On Azerbaijan's Distinctive Market Features and Key
Opportunities
One of Azerbaijan's distinguishing characteristics is that
decisions are made based on a clear understanding of the issue and
the scale of the challenge, rather than being driven by market
pressure or short-term conditions. This is why Azerbaijan
demonstrates strong political commitment to maintaining high
business standards, including technical regulations.
This is particularly evident in the country's approach to
standardization. A good example is the government's program to
harmonize national standards with international requirements, which
serves as the foundation for the 2021–2028 national standardization
improvement plan. The implementation of this plan is already
underway. It provides significant support for businesses seeking to
drive transformation and innovation more quickly, without
unnecessary delays.
Another distinctive feature of Azerbaijan's legislative process
is that proposed regulatory changes are subject to public
consultation before being adopted. This is extremely important
because it allows the business community to participate in
discussions and jointly examine why a particular regulation should
be introduced.
These discussions are conducted openly, with participation from
businesses and support from business associations and professional
communities. We sincerely welcome this inclusive decision-making
process. It appears to create outcomes that benefit all
stakeholders and reflects the practices of many of the world's most
advanced economies.
On Regulatory Frameworks and Science-Based
Innovation
Science-based innovation means smart innovation. It is built on
the principle that different products present different levels of
risk and should be evaluated accordingly as scientific evidence
evolves. This means product regulation should be grounded in
science, rather than treating all product categories the same. This
approach has already been adopted in many leading countries,
including Sweden and several others.
I believe that effective regulation—meaning regulation that is
proportionate to risk—drives progress. It enables people to access
scientifically substantiated, non-misleading information, which is
increasingly important in a world saturated with information from
countless sources. People need to trust regulatory systems and
public policy. Regulation should create an environment that
supports consumer education and communication about the differences
between products. Society's demand for this is growing.
Azerbaijan has already established a process for developing its
regulatory framework. I believe the country is on the path toward
creating an appropriate regulatory environment because decisions
here are based on science and evidence. This is important not only
in our industry but across many sectors.
The second key element is predictability. Predictability
encourages investment, and it has two components. Sound regulation
is essential, but it must also be stable and predictable over the
long term in order to support investment. Investments in this
category are substantial. Clear and consistent regulatory policies
always enable companies to bring breakthrough and innovative
products to market more quickly.
We are no longer alone in this category. Today, other companies
are active in the market as well. Ten years ago, when we started,
we were virtually alone, and few believed it was possible to change
the situation by offering smokers scientifically substantiated
alternatives with the potential to reduce harm. Today, many
companies are moving in the same direction, and we are pleased that
this transformation is continuing because it has the potential to
make a greater positive contribution to public health, the
workforce, and society as a whole.
On Protecting Minors
When it comes to minors' access to our products, our policy is
one of zero tolerance. Young people should have absolutely no
access to products intended exclusively for adult smokers.
That is why we have implemented a strict internal corporate
policy that, in many respects, goes beyond national legal
requirements. It is supported by a robust age-verification system
across both retail outlets and digital sales channels, helping
ensure that minors cannot purchase or access these products. As a
global international company, we take this responsibility extremely
seriously.
Our zero-tolerance approach includes rigorous commercial
practices such as age verification, retailer training, and
contractual obligations for distributors and business partners to
prevent sales to minors in both physical and digital channels. In
addition, we conduct continuous monitoring and enforcement through
daily internal compliance checks, regular audits, and clear
consequences for violations. These measures help ensure that our
standards are consistently upheld in practice.
Cooperation is the key. Cooperation with governments, civil
society, and other industry participants is essential because
effective youth access prevention programs require coordinated
action involving regulators and society as a whole.
Strict youth access controls and zero tolerance are
non-negotiable. Products intended for adult smokers must never be
accessible to minors. At the same time, adult smokers should have
access to scientifically substantiated information that enables
them to make informed decisions—whether to quit smoking and
nicotine altogether or, if they continue using nicotine, to switch
to less harmful alternatives.
On Choosing Baku as the Host City for
Technovation
If you look at Baku today, it is a very different city. Baku has
become increasingly visible around the world. Even today, for
example, Japanese Netflix viewers are discovering the city. More
broadly, Baku has evolved into a venue for international business
and public dialogue, extending far beyond the regional level.
The city has already hosted several major international events,
including COP29, Baku Energy Week, and the UN World Urban Forum,
and I believe many more significant events lie ahead.
I asked myself, "Why not Baku?" It offers a welcoming
environment for discussing important issues. So we decided to bring
Technovation here. Previously, the forum had been held in
Washington, Stockholm, Abu Dhabi, and Dubai. Now, it has also come
to Baku.
I am genuinely proud of how much more visible Baku and
Azerbaijan have become, both regionally and globally, compared with
just a few years ago. There is a culture here that embraces
innovation, and we are pleased to be part of it and to continue
supporting these efforts.
