Tokyo, Nov. 5 (Jiji Press)–Russian President Vladimir Putin on Thursday issued an order for assets held by Japan Tobacco Inc. in Russia to be placed under the temporary management of a Russian company. Putin signed a decree on the move the same day. Russia has been increasing pressure on Japan. Putin in August visited Etorofu, one of the four northwestern Pacific islands at the center of a long-standing territorial dispute between Tokyo and Moscow, marking his first trip ever to any of the islands. Last month, Russian authorities detained a reporter for the Hokkaido Shimbun, a daily newspaper in Japan, on suspicion of espionage. Russia set up the temporary management system for foreign firms’ assets in 2023 based on a presidential decree as a countermeasure against Western sanctions on Moscow over its invasion of Ukraine. A company whose Russian assets are placed under the management of the Russian side based on the system continues to possess the ownership of the assets but effectively loses management right. Japan Tobacco is the first global tobacco giant to have its Russian assets placed under the temporary management of a local entity, according to Russian news agency Interfax. JT International, a Japan Tobacco subsidiary running overseas business, launched Russian operations in 1999 and became the leading player in the country’s tobacco market in 2007. JTI has four factories in Russia, employing about 4,000 people. Japan Tobacco said that the company is carefully examining the current situation and options it could take in the future while putting employees and other stakeholders first. Russia is also increasing pressure on companies from European countries that continue providing support to Ukraine. In September, Russia placed assets of firms including Swiss food and beverage giant Nestle SA under its management. END [Copyright The Jiji Press, Ltd.]
