Putin has "taken control of" three more Russian enterprises of the Japan Tobacco International group

Russian dictator Vladimir Putin expanded the list of Japan Tobacco International (JTI) companies in Russia being placed under temporary management, adding three more companies to the list approved on Thursday, UNN reports, citing Reuters.

Details

On Thursday, Putin signed a decree transferring JTI’s Russian assets — the largest tobacco-products manufacturer in Russia, part of Japan Tobacco Inc. (2914.T) — under temporary management. Thus, the tobacco group became the latest foreign company to lose control of its local operations amid Moscow’s tightening control over assets owned by foreigners.

Under the initial decree, stakes in four JTI companies were transferred to the management of the Russian company "Industrial Assets."

In a separate decree published overnight on Saturday, the measure was extended to three more companies owned by the JTI Investments Sarl structure. According to Russian media, the three firms served as an importer, a management company, and a holding company.

In addition, on Saturday, Russian media quoted the head of Industrial Assets, Anton Pivovarov, as saying that the company intended to support production, retain the existing workforce, and fulfill its obligations to employees and business partners without any disruptions.

Putin’s decrees do not explain the reasons for the decision, but the Kremlin had previously linked similar cases of assets being placed under external management to the actions of countries that Russia considers hostile.

We would add

In a written statement released after the first decree was issued, JTI said it was aware of the decision and was currently "assessing the situation and possible courses of action, with its stakeholders — first and foremost, its employees — as its top priority."

The Japanese government owns about 37% of Japan Tobacco Inc., whose brand portfolio includes Winston and Camel cigarettes, among others.

The Russian business accounts for about 10% of the Japan Tobacco group’s revenue and approximately 25% of its operating profit.