Russian President Vladimir Putin has expanded the list of Japan Tobacco International (JTI) businesses placed under temporary administration in Russia. A decree published overnight added three more companies to the list of assets seized on Thursday.
The original decree signed on Thursday transferred the Russian assets of JTI—part of Japan Tobacco Inc and the largest tobacco manufacturer in Russia—to temporary management. This move makes the tobacco group the latest foreign company to lose control of its local operations as Moscow tightens its grip on overseas-owned assets.
According to the initial decree, stakes in four JTI businesses were placed under the administration of the Russian company Industrial Assets. The separate decree published overnight extended this measure to three additional companies owned by JTI Investments Sarl. The Interfax news agency reported that these three firms functioned as import, management, and holding companies.
Anton Pivovarov, Head of Industrial Assets, told the media outlet RBC on Saturday that the company would seek to maintain production, preserve existing teams and fulfil obligations to employees and business partners without disruption.
While Putin's decrees provided no reason for the move, the Kremlin has previously linked similar asset seizures to actions taken by countries it considers hostile to Russia.
In an emailed statement issued after the first decree, JTI said it was aware of the decision and was "assessing the situation and our options, prioritising our stakeholders, most notably our employees".
The Japanese government owns around 37% of shares in Japan Tobacco Inc, which owns brands such as Camel and Winston cigarettes. The Russian business accounts for about 10% of Japan Tobacco Group's revenue and roughly 25% of its operating profit.
