Putin Broadens Temporary Administration of Japan Tobacco Operations in Russia
- Three more Japan Tobacco companies were added to the list
- The decree affects the Russian assets of Japan Tobacco Inc
MOSCOW: Russian President Vladimir Putin has expanded the list of Japan Tobacco International (JTI) businesses placed under temporary administration in Russia, adding three more companies to those included in the original order issued on Thursday.
On Thursday, Putin signed a decree moving the Russian assets of Japan Tobacco International (JTI)—the largest tobacco producer in Russia and a key Japan Tobacco Inc. subsidiary—to temporary administration. This brings the tobacco group to the forefront of foreign companies losing control of local operations as Moscow further tightens its grip on overseas assets.
The original decree placed the stakes in four JTI companies under the administration of Russia’s Industrial Assets agency.
A subsequent decree, issued overnight, extended the same measure to three more companies, all owned by JTI Investments Sarl.
According to Interfax, the three companies functioned as import, management and holding entities.
In a separate statement, RBC reported that Anton Pivovarov, head of Industrial Assets, said the company aimed to sustain operations, retain its workforce, and honor its commitments to employees and business partners.
While the decrees did not cite a specific reason, the Kremlin has previously associated similar asset seizures with actions taken by nations it deems hostile to Russia.
Following the initial decree, JTI issued an emailed statement indicating it was aware of the decision and was “assessing the situation and our options, prioritising our stakeholders, most notably our employees.”
The Japanese government holds approximately 37% of Japan Tobacco Inc.’s shares, which produce well‑known brands such as Winston and Camel cigarettes. The Russian operations contribute roughly 10% of the group’s revenue and about 25% of its operating profit.
