Russia: Putin orders the seizure of Japan Tobacco International's assets
The Kremlin placed the Japanese multinational's operations under Russian administration amid deteriorating relations with Tokyo and tensions stemming from the war in Ukraine.
Russian President Vladimir Putin
Russian President Vladimir Putin ordered on Thursday the temporary takeover of Japan Tobacco International's (JTI) assets in Russia, a new measure against a foreign company amid the economic and diplomatic tensions stemming from the invasion of Ukraine.
As reported by AFP, the decision was enacted via a presidential decree that places the Russian operations of JTI, a Geneva-based multinational tobacco company, under "provisional administration" by a local company called Industrial Assets.
The measure affects JTI's stakes in four Russian companies and comes on top of other actions taken by the Kremlin against foreign companies. According to Reuters, recent cases include the Swiss food giant Nestlé and the French supermarket chain Auchan.
Russia tightens measures against foreign companies
Since the start of the full-scale invasion of Ukraine in February 2022, hundreds of multinationals have left the Russian market. However, others have chosen to continue their operations despite international sanctions.
Moscow has imposed severe financial restrictions on companies from countries it considers "hostile," including limitations on dividend payments and high taxes for those attempting to sell their businesses.
These measures have complicated the withdrawal of foreign companies and, in some cases, have led to their operations coming under the control of Russian administrators.
The decision comes amid a diplomatic crisis with Japan
The intervention involving JTI coincides with a further deterioration in relations between Moscow and Tokyo, after Russian authorities detained Japanese journalist Yuki Imai, a reporter for the Hokkaido Shimbun, on charges of espionage.
According to AFP, in a report published by The Moscow Times, Japan made diplomatic efforts to secure the journalist's release after rejecting the accusations made by Russian authorities.
Adding to these tensions is a territorial dispute that both countries have been locked in for decades over the Kuril Islands, which are controlled by Russia and partially claimed by Japan.
Tokyo has also joined the international sanctions against Moscow over its military offensive in Ukraine, a stance that has deepened diplomatic differences between the two governments.
The decision against JTI thus represents a new episode in Russia's economic pressure on companies linked to countries that support international sanctions, although the decree does not specify the specific reasons for the action.
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