Putin Places Japan Tobacco International's Russian Assets Under State Control

Russian President Vladimir Putin on Thursday signed an executive order placing the Russian assets of Japan Tobacco International (JTI), a Japanese tobacco group, under the "temporary management" of the state. The decree covers four JTI corporate entities in Russia and continues a wave of seizures of Western company assets that began this autumn.

The order names a company called Industrial Assets as the temporary manager. Independent media have reported that several Russian companies share that name, including some involved in earlier seizures. The Industrial Assets that is taking over JTI was reportedly registered on Sept. 16 and is owned by Sergei Dremov, a former officer of the FSB (Russia's security service) in the Kursk region.

JTI has operated in Russia since 1999 and holds a market share of up to 40%. Its brands include Winston, Camel, Sobranie and LD.

Earlier seizures

The move against JTI follows this fall's seizures targeting major Western firms: German wholesaler Metro, French retailer Auchan, Swiss food group Nestlé and logistics operator FM Logistic. Putin has defended such steps as a symmetrical response to Western sanctions and the freezing of Russian state assets abroad. He has said control of the seized Russian subsidiaries could be returned under favorable conditions.

Tensions with Japan

The action comes amid a sharp deterioration in relations between Japan and Russia. Some analysts say Moscow is seeking to punish Tokyo for its growing support for Ukraine and its decision to join G7 sanctions over the full-scale invasion. In October, the FSB arrested Yuki Imai, a Japanese journalist with the Hokkaido Shimbun newspaper, on espionage accusations. Both his employer and the Japanese government deny the charges.