On 5 November, President Putin signed a decree placing Japan Tobacco Inc.'s (JT) Russian operations, run by its overseas subsidiary JTI, under provisional administration rather than under JTI's name. The Russian operations account for approximately 10% of sales and operate four production facilities.
Russian President Vladimir Putin signed a decree on 5 November placing the Russian operations of JTI, the overseas subsidiary overseeing Japan Tobacco Inc.'s (JT) global operations, under provisional administration. As a result, operations in Russia will come under government control.
According to JTI, approximately 4,000 people work at its offices and factories in Russia, which has four production facilities, including sites in the northwestern Leningrad Oblast and Lipetsk Oblast south of Moscow. JTI began operations in Russia in 1999 and became the domestic market leader in 2007.
JT said it is carefully considering its options going forward, putting stakeholders, including employees, first.