Putin places four JTI businesses under Russian management

Russian President Vladimir Putin signed a decree on November 5 placing stakes in four Japan Tobacco International businesses under temporary administration by Russian company Industrial Assets, transferring management of the Japanese tobacco group’s local operations. A separate decree published overnight added three more JTI-owned companies to the measure, Reuters reported on November 7.

The initial decree covers Petro, Donskoy Tabak, JTI Yelets and Kres Neva. Petro and Donskoy Tabak make cigarettes, while JTI Yelets and Kres Neva process tobacco. The measure places ownership stakes in the businesses under Industrial Assets’ management. It does not state why the decision was made.

The additional companies named in the later decree are JTI-owned import, management and holding businesses, according to Interfax, as reported by Reuters. The available report does not describe any resulting changes to production, staffing or day-to-day operations. Russia’s temporary-administration mechanism changes management authority, but the decree does not establish what practical effects the move will have at JTI’s businesses.

Japan formally protested the initial measure. Finance Minister Satsuki...