Russia signed a presidential decree placing group companies and assets of Japan Tobacco (JT) under the control of Russian companies. JT's Russian business is said to account for approximately 10% of its revenue, and the Japanese government has protested and called for the decree to be withdrawn.
The Russian government signed a presidential decree placing QT group companies and assets under the control of Russian companies, with the aim of increasing pressure on Japanese companies. JT's Russian business is expected to be affected, and its management is expected to have less freedom.
The measure is viewed as part of pressure aimed at having Japan ease its sanctions against Russia over the invasion of Ukraine. Russia introduced a system in 2023 for placing the assets of companies from unfriendly countries under temporary administration, and cases involving companies such as Danone and Nestlé have already occurred.
The Japanese government protested the measures against JT and called for their withdrawal. Since many Japanese companies have operations in Russia and there are concerns that the damage could spread, some believe the government should negotiate from a firm position.
Russia has recently imposed pressure on Japan on one occasion after another, and it will be necessary to maintain a negotiating stance consistent with the rule of law. Some also believe that if Russia wants sanctions lifted, it must stop its invasion of Ukraine.