Russia Seizes Japan Tobacco Assets, Tokyo Demands Withdrawal of Decree
Thestandard · 4 SOURCESabout 3 hours ago2 MIN
Summary
Russian President Vladimir Putin signed a decree on Thursday to temporarily take control of Japan Tobacco International's Russian assets, including four local factories, in the latest move in Moscow's widening crackdown on foreign companies from "unfriendly" nations. Japan has lodged a formal protest through diplomatic channels, demanding the immediate withdrawal of the decree . The Russian business represents a substantial portion of Japan Tobacco Group's financial performance, accounting for roughly 10% of group revenue and about 25% of operating profit .
Key Points
- Putin signed the decree on November 5, transferring control of four JTI business entities to Russian-linked company Industrial Assets
- Japan Tobacco International operates four production bases in Russia with approximately 4,000 employees, holding a 40% market share
- Japanese Finance Minister Satsuki Katayama confirmed the government owns around 37% of Japan Tobacco Inc. shares
- Japan's Foreign Affairs Ministry European Bureau Director Jin Nakamura summoned Russian Ambassador Nikolai Nozdrev on November 6 to lodge a strong protest
- The decree follows similar actions against Nestle, Metro AG, and Auchan in September and October
Why It Matters
This seizure signals a further deterioration in Russia-Japan relations, which have been strained by Putin's August visit to Iturup Island in the disputed Northern Territories, and Russia's detention of a Japanese journalist . The move also demonstrates Moscow's willingness to weaponize asset seizures against companies from nations it designates as "hostile," potentially deterring future foreign investment in Russia and escalating tensions with G7 nations that have sanctioned Moscow over its war in Ukraine .
This seizure signals a further deterioration in Russia-Japan relations, which have been strained by Putin's August visit to Iturup Island in the disputed Northern Territories, and Russia's detention of a Japanese journalist . The move also demonstrates Moscow's willingness to weaponize asset seizures against companies from nations it designates as "hostile," potentially deterring future foreign investment in Russia and escalating tensions with G7 nations that have sanctioned Moscow over its war in Ukraine .