President Vladimir Putin signed an executive order on Thursday, November 5, placing the Russian assets of Japan Tobacco International (JTI) under temporary management by the state. The order names a Russian company, Industrial Assets, as the temporary manager of four JTI corporate entities in Russia. Independent media reported that the Industrial Assets taking control of JTI was registered on September 16 and is owned by Sergei Dremov, a former FSB security service officer in the Kursk region.
JTI has operated in Russia since 1999 and holds a market share of up to 40 percent, built on brands including Winston, Camel, Sobranie and LD. The Geneva headquartered group is the international arm of Japan Tobacco, and Russia has long been one of its largest markets. Neither report carried a response from the company.
The takeover extends a wave of seizures this autumn that has already put the Russian operations of German wholesaler Metro, French retailer Auchan, Swiss food group Nestlé and logistics operator FM Logistic under external administration. Putin has defended the moves as a symmetrical response to Western sanctions and the freezing of Russian state assets abroad, and has said control of the seized subsidiaries could be returned under favorable conditions.
The JTI order also comes as relations between Japan and Russia deteriorate sharply. In October, Russia’s FSB arrested Yuki Imai, a journalist with the Hokkaido Shimbun newspaper, on espionage accusations that both his employer and the Japanese government deny. Some analysts cited by The Moscow Times say Moscow is seeking to punish Tokyo for its growing support of Ukraine and its decision to join G7 sanctions over the invasion.