Russian President Vladimir Putin placed four of Japan Tobacco International’s (JTI) key manufacturing and processing businesses in Russia under the temporary administration of Industrial Assets, a state-linked firm. Japan Tobacco said it is assessing the move.
The Russian business is the country’s largest tobacco company. It employs approximately 4,000 people. It holds nearly 40% of the market. Russia previously accounted for around 20% of Japan Tobacco’s group earnings.
This is the first time Russia has imposed such measures on a major international tobacco company. The move is part of a broader pattern in which Moscow takes control of assets owned by companies from countries it considers “unfriendly.” It follows a deterioration in diplomatic relations between Russia and Japan.