Russia has signed a presidential decree placing shares and equity interests in 7 Russian businesses of Japan Tobacco (JT) under temporary administration. The target companies' total assets are reportedly approximately ¥1.5 trillion, including approximately ¥360 billion in cash and cash equivalents and approximately ¥200 billion in liabilities. Management rights were transferred to a newly established company responsible for industrial assets. This has drawn attention to the position and future direction of JT's Russian operations.
Russian President Vladimir Putin signed a presidential decree on 6 November 2026 placing shares and equity interests in 7 JT companies in Russia, including sales and manufacturing companies, under temporary administration. The government has not stated a reason, but there have been previous cases of foreign companies' management rights being placed under temporary administration. The measure is viewed as part of broader moves involving corporate restructuring and the redistribution of assets in Russia.
JT's Russian operations are highly significant to the group's overall earnings structure. As of the results for the third quarter of fiscal 2026, the Russian market accounted for approximately 10% of sales and approximately 25% of operating profit. Assets, including goodwill, were disclosed at approximately ¥1.5 trillion, with approximately ¥360 billion in cash and cash equivalents and approximately ¥200 billion in liabilities.
The Russian business newspaper Kommersant estimates the value of JT's Russian operations at RUB 250 billion–300 billion, or approximately ¥483 billion–580 billion. The companies covered by the decree include Petro in St. Petersburg and JTI Donskoy Tabak in Rostov-on-Don. Part of the cigarette business involving manufacturing, raw-material supply and sales was placed under administration. Management rights were obtained by Promyshlennye Aktivy, a newly established company handling industrial assets. Uncertainty remains over its ownership and background.
Russia has previously placed the management rights of foreign companies such as Carlsberg and Danone under temporary administration. The latest case is viewed as part of a policy involving the redistribution of wealth.