Russia puts JT assets under control as part of increased pressure on Japan?

On the 5th, Russian President Vladimir Putin ordered that assets held by Japan Tobacco (JT) in Russia be transferred to the temporary control of the Russian company. signed an executive order. Russia has recently been increasing pressure on Japan, including Putin's visit to the Northern Territories and the detention of a Hokkaido newspaper reporter, which has also affected Japanese companies.

The temporary management system was established in 2023 based on a presidential decree to counter the freezing of Russian assets by the West and other countries. The company retains ownership, but effectively loses control. According to Interfax news agency, this is the first time that the assets of a global tobacco giant have come under the control of a Russian company.

According to the website of JT International (JTI), which handles JT's overseas business, JTI has been operating its Russian business since 1999. In 2007, it became number one in the Russian tobacco market. The company has four production sites in Russia and employs approximately 4,000 people.