Kremlin Seizes Japan Tobacco International’s Russian Assets

The decree lists a company called Industrial Assets as the temporary manager of four JTI corporate entities in Russia. Independent media reported that multiple Russian companies carry the name Industrial Assets, including those involved with previous seizures of foreign business assets.

The Industrial Assets taking control of JTI was reportedly registered on Sept. 16 and is owned by former Kursk region FSB security service officer Sergei Dremov.

In a statement sent to The Moscow Times, JTI said it was aware of the presidential decree placing its Russian assets under temporary administration.

“We are assessing the situation and our options, prioritizing our stakeholders, most notably our employees,” it said.

Operating in Russia since 1999, JTI holds a market share of up to 40%, built on brands such as Winston, Camel, Sobranie and LD.

Putin has defended the moves as a symmetrical response to Western sanctions and the freezing of Russian state assets there. He said control of the seized Russian subsidiaries could be returned under favorable conditions. 

The move against JTI also comes amid a sharp deterioration of relations between Japan and Russia. Some analysts say Moscow is seeking to punish Tokyo for its growing support of Ukraine and decision to join G7 sanctions over the full-scale invasion.

In October, Russia’s FSB arrested Japanese journalist Yuki Imai of the Hokkaido Shimbun newspaper on accusations of espionage, which both his employer and the Japanese government deny.

AFP contributed reporting.