Putin puts four Japan Tobacco factories in Russia under temporary control

Russian President Vladimir Putin has signed a decree that puts four production sites in Russia, held by an overseas subsidiary of Japan Tobacco (JT), under the temporary control of a Russian company. He signed it on 5 November.

The move affects factories owned through JT's foreign subsidiary. The decree describes the arrangement as temporary.

JT has been in a delicate position since Russia's invasion of Ukraine. In March 2022, the Japanese tobacco maker said it would stop new investment and advertising in Russia, while continuing to operate there.

There is also a precedent. In July 2023, Putin signed a decree placing the Russian units of Danone and Carlsberg (the Baltika brewery) under temporary state-appointed management. That set the pattern for later takeovers of foreign assets.

For readers in Japan, this means another Japanese company's business in Russia is now under Russian control. For Russia, it is one more case of foreign-owned assets being brought under domestic management.