Japan Demands Russia Return Control of Four Japan Tobacco Businesses

Japan has demanded that Moscow reverse a presidential decree placing four Russian manufacturing businesses belonging to Japan Tobacco International (JTI) under temporary management. The order gives a Russian company called Industrial Assets control of the operations of Russia’s largest tobacco producer. Russian President Vladimir Putin signed the decree on Thursday, Nov. 5. The following day, Japanese Finance Minister Satsuki Katayama said Tokyo had lodged a formal protest. Her ministry holds a 37.55% stake in Japan Tobacco Inc., JTI’s parent company.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. “We have already protested through diplomatic channels and requested that the measure be withdrawn,” Katayama told reporters, according to Reuters⁠. Russia accounts for about 10% of Japan Tobacco Group’s revenue and roughly a quarter of its operating profit, Reuters reported. JTI, whose brands include Winston and Camel, has operated in Russia since 1999 and says it has led the market by sales volume since 2007. Its four production sites include two cigarette factories. Japan Tobacco confirmed on Friday that the order covered all four manufacturing subsidiaries. The company said it was assessing the impact on the group and its options, with employees a priority. Tokyo’s second protest in a month In October, Japan summoned Russia’s ambassador⁠ after the arrest of a Japanese journalist on Sakhalin Island in Russia’s Far East. Russia’s Federal Security Service accused the journalist of gathering information about Russian defenses for Japanese intelligence. Other Topics of Interest NATO Chief Sees Ukraine War Ending in ‘Compromise’ Mark Rutte says Europe will still face a threat from Russia’s army after the fighting ends. His remarks come ahead of US-mediated talks in Abu Dhabi. The arrest came amid a longstanding territorial dispute over four islands south of Sakhalin. Japan calls them the Northern Territories. Russia administers them as part of the Kuril chain. The Soviet Union took control of the islands at the end of World War II. Tokyo has also deepened its defense ties with Kyiv. In October, Japan’s Defense Ministry signed a contract to buy interceptor drones⁠ from Ukrainian manufacturer SkyFall. In May, Japan committed about $14.7 million to NATO’s Prioritized Ukraine Requirements List to purchase US-made nonlethal equipment for Ukraine. How Moscow has taken control of foreign businesses The Japan Tobacco decree follows a similar order Putin signed in September. That decision placed Russian operations linked to Nestlé, Auchan, Lemana Pro and FM Logistic⁠ under L.E.V. Management. In Japan Tobacco’s case, the decree names a different manager, Industrial Assets. Earlier targets included Finnish energy company Fortum, French dairy producer Danone and Danish brewer Carlsberg. After Moscow took control of Danone’s Russian business, it installed Yakub Zakriev, a nephew of Chechen leader Ramzan Kadyrov, as its head. Danone later sold the business and left Russia. The seizures have affected Russian owners as well as foreign investors. Research published in 2025 put the value of assets confiscated by Russian authorities over the preceding three years at about $50 billion. Foreign companies that sold up or closed their operations faced a different set of losses. By March 2024, a Reuters review of company filings and statements⁠ had documented more than $107 billion in write-downs and lost revenue among companies exiting Russia. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 90% of readers are outside of Ukraine – make it truly Ukraine’s global voice.