President Putin signed a decree transferring four of Japan Tobacco Inc.'s (JT) Russian subsidiaries to temporary administration by Russian companies. Ownership will remain with JT, but management control will effectively be transferred from the Japanese company.
On the 5th, Russian President Vladimir Putin signed a decree placing four of JT's Russian subsidiaries under temporary administration by Russian companies. As a result, Russian companies will hold management control of the four target companies, while ownership will remain with JT.
The companies include JTI Donskoy Tabak, one of four companies responsible for the Russian operations of JT International (JTI). Although there will be no immediate transfer of ownership, the measure constitutes effective management intervention. Against the backdrop of deteriorating Japan-Russia relations, it is positioned as a measure involving intervention in the management of a Japanese company.