President Putin signed a decree placing JT's Russian operations under the provisional administration of a local company. The Japanese government has protested and called for the measure to be withdrawn.
The Russian president's signature will put 4 local companies in temporary control of JT International's Russian operations. As a result, JT is expected to effectively lose management control, according to reports.
JT has operated its Russian business since 1999 and is now the country's largest tobacco manufacturer. The measure is positioned as part of the Russian government's move to place the assets of companies subject to foreign sanctions under its control.
The Japanese government announced that it had protested to Russia and called for the measure to be withdrawn. Developments continue in Japan-Russia relations over issues including the visit to Iturup Island in August and the detention of a Hokkaido Shimbun reporter in October.