Russian President Vladimir Putin has signed a decree temporarily seizing the Russian assets of Japan Tobacco International (JTI), Russia’s biggest tobacco manufacturer, prompting an immediate protest from Tokyo. According to the Straits Times, the decree was signed on Nov 5, and JTI is the latest foreign company to lose control of its local operations.
The decree places stakes in four JTI businesses under the administration of Russian company Industrial Assets, according to the Straits Times. Euronews reports that the order covers JTI’s factories in St Petersburg, Rostov-on-Don, the Lipetsk region and the Leningrad region, and transfers them to state-linked holding company AO Promyshlennye aktivy.
Japan’s Finance Minister Satsuki Katayama said Japan had protested through diplomatic channels and requested that the measure be withdrawn, the Straits Times reported. The decree gave no reason for the seizure. The Kremlin has linked similar moves to countries it designates as "hostile."
JTI employs around 4,000 people in Russia and holds roughly 40% of the Russian cigarette market, according to Euronews. The Russian business accounts for about 10% of JT Group’s revenue and roughly 25% of its operating profit, the Straits Times reported.
The seizure follows Russia’s arrest last month of Japanese journalist Yuki Imai on espionage charges. Russia has claimed that Tokyo systematically uses journalists to gather intelligence, a claim Japan rejected.
Relations between the two countries have soured since Putin’s August visit to a disputed island near Japan and the detention of a Japanese journalist in Sakhalin. Russia also called a Japanese company’s drone sale to Ukraine a hostile step.
JTI joins Nestle, Auchan, Leroy Merlin and Metro, whose Russian assets were placed under the same external management mechanism. Moscow presents this as a response to sanctions.
JTI said in an emailed statement that it is assessing the situation and its options, and that it is prioritising its employees. Tokyo has asked Moscow to withdraw the measure. Putin has said the mechanism could return control to former owners if conditions improved.
The sources do not include a Russian government statement beyond the decree itself, and JTI’s response is limited to that emailed statement. Euronews describes the order as made on Thursday, while the Straits Times dates it to Nov 5, and the sources do not give the year.
Sources
This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.