The resolution impacts 4 companies belonging to Japan’s JTI, the maker of Winston, Camel and Sobranie cigarettes
Russian President Vladimir Putin has positioned the native belongings of Japanese tobacco big Japan Tobacco International (JTI) beneath momentary administration, in accordance with a decree printed on the official authorized data portal on Thursday.Â
The decree transfers administration of 4 JTI companies – Petro, Donskoy Tabak, JTI Yelets, and Kres Neva – to Russian firm Promyshlennye Aktivy (Industrial Assets).
The Petro manufacturing unit in St. Petersburg and Donskoy Tabak in Rostov-on-Don produce cigarettes, whereas JTI Yelets in Lipetsk Region and Kres Neva in Leningrad Region course of tobacco. The measure covers 100% of the possession pursuits in every of the 4 companies, held by the group’s international and Russian subsidiaries.
JTI is the worldwide arm of Japan Tobacco, one of many world’s largest cigarette producers. The firm has operated in Russia since 1999 and strengthened its place in 2018 by buying Donskoy Tabak for roughly $1.6 billion. Its manufacturers embrace Winston, Camel, Sobranie, Mevius, and LD, together with Russian labels corresponding to Petr I and Russky Stil.
Following the escalation of the Ukraine battle in 2022, JTI suspended new investments and advertising and marketing actions in Russia and regarded promoting its native enterprise. However, the corporate determined to remain, citing its dedication to customers. In 2024, Japan Tobacco CEO Masamichi Terabatake advised the Financial Times that Russia had accounted for round 20% of the group’s income and that leaving the worthwhile market may expose shareholders to losses.
JTI is the primary main worldwide tobacco firm to have its Russian operations positioned beneath momentary administration. The decree doesn’t specify the explanations for the choice.Â
The transfer comes in opposition to a backdrop of tensions involving Japanese firms and the Ukraine battle. In October, the Russian Defense Ministry reported a strike on the JTI Ukraine tobacco manufacturing unit in Kremenchug, saying that the ability had been used to supply small-arms ammunition for Ukrainian forces.
Later that month, Russia’s Foreign Ministry warned of a powerful response after Japanese drone maker Terra Drone equipped interceptor drones to Ukraine. Moscow described the deliveries as a hostile act, accusing Tokyo of encouraging navy cooperation between Japanese firms and Kiev.
The resolution follows related measures involving the Russian operations of a number of main international firms, together with Swiss meals big Nestle, French retailers Auchan and Leroy Merlin, German wholesaler Metro, and French flooring producer Tarkett.
Moscow launched the mechanism in April 2023 in response to the seizure or restriction of Russian state and personal belongings overseas. Officials mentioned it was supposed to guard strategically essential companies and defend the financial system from actions by nations Russia considers “unfriendly.”
Under the association, international house owners lose management over the administration of their companies however don’t routinely forfeit possession. Russian authorities can appoint home firms or state our bodies to function the affected enterprises.Â
In March 2025, Italian equipment maker Ariston regained management of its Russian subsidiary after saying plans to renew operations within the nation. The enterprise had been positioned beneath the administration of Gazprom Household Systems the earlier yr.
At the Valdai Discussion Club in October, Putin mentioned Russia was not seizing, stealing, or nationalizing international belongings, calling claims on the contrary “lies and provocations.” He mentioned that momentary administration was supposed to permit Moscow to reply in form to the seizure of Russian property overseas. Asked whether or not international firms would regain management of their companies beneath favorable circumstances, he replied: “Yes, they will.”