Putin expands temporary administration of Japan Tobacco assets in Russia

Nov 7 : Russian President Vladimir Putin has expanded the list of Japan Tobacco International (JTI) businesses placed under temporary administration in Russia, adding three more companies to those included in the original order issued on Thursday.

On Thursday, Putin signed a decree transferring the Russian assets of JTI, part of Japan Tobacco Inc. and Russia's largest tobacco manufacturer, to temporary management, making the tobacco group the latest foreign company to lose control of local operations as Moscow tightens its grip on overseas-owned assets.

According to the original decree, the stakes in four JTI businesses were placed under the administration of Russian company Industrial Assets.

A separate decree, published overnight, extended the measure to three additional companies, all owned by JTI Investments Sarl According to Interfax news agency, the three firms acted as import, management and holding companies.

Separately, Russian media outlet RBC on Saturday quoted Anton Pivovarov, head of Industrial Assets, as saying the company would seek to maintain production, preserve existing teams and fulfil obligations to employees and business partners without disruption.

Putin's decrees gave no reason for the move, but the Kremlin has previously linked similar asset seizures to actions taken by countries it considers hostile to Russia.

In an emailed statement issued after the first decree, JTI said it was aware of the decision and was "assessing the situation and our options, prioritising our stakeholders, most notably our employees".

The Japanese government owns around 37 per cent of shares in Japan Tobacco Inc., whose brands include Winston and Camel cigarettes.

The Russian business accounts for about 10 per cent of Japan Tobacco Group's revenue and roughly 25 per cent of its operating profit.