Philip Morris International admitted it would “rather keep” its business in Russia than sell on stringent Kremlin terms that would deny shareholders fair value, highlighting the challenges facing companies trying to leave the country without taking a huge financial hit.

Chief executive Jacek Olczak said the tobacco group, which sells Marlboro cigarettes outside the US, had been in discussions with at least three “serious” potential buyers but that “the talks have stalled because nobody knows how I can make it work”.

Pointing to regulations on the sale of Russian assets by foreign companies that allow the Kremlin to dictate the valuation, the size of a new owner’s dividend and access to cash flow, Olczak told the Financial Times he had a “duty to my shareholders to recover” value.