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Putin places Japan Tobacco’s Russian assets under temporary administration

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MOSCOW, Nov 5 : Russian President Vladimir Putin has placed the Russian assets of Japan Tobacco International under temporary administration, a decree showed on Thursday, making it the latest foreign company to lose control of its local operations in a widening Kremlin crackdown.

The decree placed JTI’s stakes in four businesses in Russia under the management of Russian company Industrial Assets. It did not provide a reason, but the Kremlin has linked similar moves in the past to the behaviour of what it designates “hostile countries.”

JTI, part of Japan Tobacco Inc., describes itself as Russia’s biggest tobacco manufacturer by sales volume. It did not immediately respond to a request for comment.

The decree follows Russia’s decision to place the assets of Swiss food giant Nestle, German wholesaler Metro ‌AG, and French retailer Auchan under temporary management in September. Moscow took control of the Russian assets of four more European companies in October, citing European countries’ support for Ukraine and what it called illegal expropriations of Russian property.

In October, Russia’s Foreign Ministry said that it considered a drone sale to Ukraine by a Japanese company to be a hostile step and warned of a harsh response. Russia also said last month it had detained a Japanese journalist in its far eastern Sakhalin region on suspicion of espionage, marking a new low in bilateral relations that have worsened in recent months.

Source: Reuters

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