A manufacturing facility owned by the Japan Tobacco International firm is producing worldwide model cigarettes, Saint Petersburg, Russia, September 21, 2026. /VCG
Russian President Vladimir Putin signed a decree on Thursday putting Russian belongings of Japan Tobacco International (JTI) underneath momentary administration.
According to the decree, fairness stakes linked to JTI’s manufacturing operations in Russia have been put underneath the administration of Russian firm Industrial Assets.
JTI, a number one world tobacco producer, has operated in Russia since 1999 and grown into Russia’s prime tobacco producer. Global cigarette manufacturers comparable to Winston, Mevius, Camel, Sobranie, Glamour and LD, in addition to home Russian manufacturers Russky Stil, Pyotr I and Troika, are a part of JTI’s portfolio.
In an emailed assertion, the corporate stated it was conscious of the decree and it was “assessing the situation and our options, prioritizing our stakeholders, most notably our employees”.Â
The presidential decree of the Russian Federation “On the Temporary Administration of Certain Property,” adopted in April 2023, establishes a mechanism for putting sure belongings owned by people and entities linked to nations designated as unfriendly by Russia underneath momentary administration.Â
Reasons behind the ‘momentary administration’
In latest months, tensions have sharply escalated between the 2 nations. Russia has labeled Japan as an “unfriendly country” on account of its participation in Western-led financial sanctions, asset freezes, and commerce restrictions following the Ukraine disaster.
In October, Moscow explicitly warned of a harsh response after the Russian Foreign Ministry protested a Japanese firm’s drone gross sales to Ukraine, alongside heightened friction over stories relating to microchips and dual-use know-how flows.
In that month, Japan-based drone producer Terra Drone delivered small interceptor drones to Ukraine’s Ministry of Defense Procurement Agency, marking Japan’s first formal arms provide to the Ukrainian navy.
Meanwhile, Japan signed a separate acquisition contract with Ukrainian drone developer SkyFall to buy P1-SUN interceptor drones for Japan’s personal protection forces.
Additionally, separate political and safety flash-points additionally intensified the stress, together with Putin’s go to to the disputed island – the Far Eastern Kuril Island of Iturup in August and the arrest of a Japanese journalist in Sakhalin on espionage costs in October.
The decree additionally follows Russia’s resolution to position the belongings of Swiss meals large Nestle, German wholesaler Metro AG, and French retailer Auchan underneath momentary administration in September and 4 extra European firms in October.
The Kremlin has stated putting overseas subsidiaries underneath the momentary administration is a countermeasure in opposition to the freezing or seizure of Russian state belongings overseas. According to EU’s official knowledge, roughly 210 billion (about $236 billion) in Russian sovereign belongings have been frozen in Europe following the Russia-Ukraine battle.
(With enter from companies)
Source: CGTN