Russian President Vladimir Putin ordered assets held in Russia by Japan Tobacco Inc. (JT) to be placed under temporary management. JTI has operated in Russia since 1999 and has 4 sites and approximately 4,000 employees in the country.
A presidential order was signed in Russia, placing JTʼs Russian assets under the temporary management of a Russian company. As a result, JTʼs assets will be placed under management in a manner that effectively deprives JT of management rights.
The temporary management system was established in 2023, having been introduced to counter asset freezes. The measure is viewed as part of efforts to increase pressure on Japanese companies.
According to JT International (JTI), which operates JTʼs overseas businesses, it has operated in the Russian market since 1999 and became the market leader in 2007. There are 4 production sites in Russia, with approximately 4,000 employees.
JT will retain ownership under this arrangement, but it is understood that the company will effectively lose its management rights. Attention is focused on the practical implementation and scope of the impact going forward.