Russia took four factories from Japan. They are furious in Tokyo

Vladimir Putin's decree, published on Thursday on the Russian government website, transfers temporary management of four plants of a subsidiary of Japan Tobacco International (JTI) to the Russian joint-stock company Promyshlennye Aktivy. This means taking away operational control from JTI while retaining ownership rights.

According to the Japanese public broadcaster NHK, factories belonging to the Japanese concern are located in St. Petersburg, Rostov-on-Don and in the Leningrad and Lipetsk regions.

The company said in a statement that in Russia it "complied with all national and international sanctions and regulations" and is currently analyzing the effects of the Russian decree. Importantly, Russia is responsible for approximately 10 percent. JTI revenues.

“We made an urgent call.”

The decision of the Russian authorities sparked fury in Tokyo. We protested through diplomatic channels and urgently called on (Russian authorities) to take action, including withdrawing this measure, Japanese Finance Minister Satsuki Katayama said at a press conference on Friday, quoted by Nikkei Asia. She assured that the government would "closely monitor the development of the situation and (...) respond appropriately."

Economy Minister Ryosei Akazawa announced that representatives of the ministries of economy and foreign affairs staying there lodged a protest in Moscow. As he admitted, such a move by Moscow was predictable, taking into account similar takeovers of Western companies recently.

The Japanese government owns 37.55 percent. shares in JTI. Nikkei Asia reports that over 100 Japanese entities still operate in Russia.

Escalation of tensions between Tokyo and Moscow

Tokyo's relations with Moscow have deteriorated after Russia launched its invasion of Ukraine in 2022. Tensions have escalated in recent months, including: after the Russian president's visit to one of the islands of the disputed Kuril archipelago and the detention in October of a correspondent of the Japanese daily "Hokkaido Shimbun" in Russia on charges of espionage.