07.11.2026 20:51
The sanctions tension between Russia and Western countries has this time affected a Japan-based company. Russian President Vladimir Putin has made a similar decision for three of tobacco giant JTI’s companies in the country, after previously transferring its production facilities to temporary management. This has further expanded control over the company’s operations in Russia.
Russian President Vladimir Putin has transferred three more Russian companies of Japanese tobacco company Japan Tobacco International (JTI) to temporary management. The entities carrying out the company's commercial activities in the country have also come under the control of the Russian authorities, after a similar decision had previously been taken for four of its factories.
MANAGEMENT OF THREE COMPANIES TRANSFERRED TO RUSSIAN COMPANY
According to the decree published on Russia's official legal information portal, all capital shares of the companies Pereslavl-Tabak, JTI Innovation Products, and JTI Russia within JTI have been placed under temporary management.
Russia-based Promyshlennye Aktivy will take over the management of the companies owned by Luxembourg-based JTI Investments Sarl. These entities play an important role in JTI's imports, wholesale sales, and other commercial activities in Russia.
SAME DECISION HAD ALSO BEEN TAKEN FOR FOUR FACTORIES
With the decree he signed on November 5, Putin had also transferred JTI's four production facilities in Russia to the temporary management of the same Russian company. With the latest decision, the entities carrying out the company's commercial operations, as well as its production activities, have also been included in this scope.
JTI, which operates in Russia with brands such as Winston, Camel, LD, and Sobranie, has approximately 4,000 employees in the country. The company holds about 40 percent of the Russian cigarette market.
JAPAN REACTED TO THE DECISION
The Japanese government reacted to Russia's decision. The Tokyo administration protested the transfer of JTI's assets in the country to temporary management and called on Moscow to withdraw the decision.
JTI, for its part, said in a statement that it was assessing the developments and reviewing the steps it could take. The company emphasized that its employees and business partners were among its priorities.
RUSSIA TRANSFERS FOREIGN COMPANIES' ASSETS TO TEMPORARY MANAGEMENT
The Moscow administration had gained the authority to transfer the assets of certain foreign companies in Russia to temporary management through a regulation that came into force in April 2023. Russia argues that it applies this mechanism in response to Western countries' sanctions against Russian companies and assets.
This practice causes foreign companies to lose control over their assets in Russia while also increasing uncertainties regarding the future of international companies' operations in the country.