A Russian presidential decree placed four overseas subsidiaries of Japan Tobacco (JT) under temporary administration, creating a situation in which management control would effectively pass to a Russian company. The move again highlights JT's overseas acquisition strategy and the unusual position of the government as its largest shareholder.
On 5 November 2026, President Putin signed a presidential decree placing the Russian operations held by JT International under the temporary administration of the Russian company Industrial Assets. The four companies covered are Petro, which operates a plant in St Petersburg; Donskoy Tabak in Rostov-on-Don; JTI Yelets in Lipetsk Oblast; and Kres Neva in Leningrad Oblast.
JT commented that it was considering the situation and its future options, prioritising employees and other stakeholders, but the circumstances could effectively deprive it of management control over its Russian business. This tense event brings into focus the relationship between JT's growth model and Japan-Russia relations.
The Russian market accounted for approximately 10% of JT's revenue and represented a significant share of its profit. JTI's market share in Russia was approximately 40%, and around 4,000 people were reportedly employed at its four local sites. Russia was estimated to account for approximately 22% of the group's operating profit in fiscal 2022 and approximately 25% in fiscal 2023.
While some companies had withdrawn from Russia, JT stopped new investment and marketing but did not choose to exit. As a result, a structure emerged in which management control was held by local capital. Some analysts say the measure carries acquisition risks similar to those associated with the Canadian litigation risk.