Putin places more Japan Tobacco Russian assets under temporary management, transferring three additional holdings to JSC Industrial Assets.
© Mikhail Metsel/Russian Presidential Press and Information Office
Russia has placed additional Japan Tobacco Russian assets under temporary management following a new presidential decree signed by Vladimir Putin. The decision transfers control of three more entities linked to the international tobacco manufacturer to JSC Industrial Assets. The development was reported by The Times of Russia following the publication of the decree on November 6.
According to the decree published on the official legal information portal, the latest move covers all shares in Pereslavl-Tobacco and 100% ownership stakes in JTI Innovative Products LLC and JTI Russia LLC. All three entities belong to JTI Investments Sarl.
Japan Tobacco Russian Assets Under Temporary Management: What the New Decree Covers
Under the latest decision, JSC Industrial Assets has been appointed to manage the following Japan Tobacco Russia assets:
All shares in Pereslavl-Tobacco.
100% of the shares in the authorized capital of JTI Innovative Products LLC.
100% of the shares in the authorized capital of JTI Russia LLC.
These companies are owned by JTI Investments Sarl, making them part of the international tobacco group’s Russian business structure.
The November 6 decree expands the list of JTI Russian subsidiaries placed under temporary management by Russian authorities.
Putin’s Earlier Decision on JTI Russian Assets
The latest announcement follows another presidential decree signed on November 5. Under that decision, stakes in five additional companies were transferred to external management by JSC Industrial Assets.
The companies included in the November 5 decree were:
Donskoy Tabak
Pereslavl-Tabak
JTI Yelets
Cres Neva
Petro
Together, the November 5 and November 6 decisions extend the temporary management arrangement to more assets associated with Japan Tobacco’s Russian operations.
Japan Tobacco’s Presence in the Russian Market
Japan Tobacco Inc. (JTI) is the world’s third-largest tobacco manufacturer, with approximately one-third of the company owned by the Japanese government.
The company has maintained operations in Russia since 1999 and has grown to become the country’s leading tobacco manufacturer.
Its product portfolio includes several internationally recognised cigarette brands, such as Winston, Mevius, Camel, Sobranie, Glamour and LD. The company’s Russian brand portfolio also includes Russian Style, Peter I and Troika.
The latest measures affect companies connected to this established business network and represent a further development in the management of foreign-owned assets in Russia.
Russia’s Temporary Management Mechanism for Foreign Assets
The legal framework behind these decisions dates back to April 2023, when President Vladimir Putin adopted the decree titled “On the Temporary Management of Certain Property.”
The decree established a mechanism allowing Russian authorities to place assets belonging to individuals and entities from countries considered unfriendly under temporary management.
The measure was introduced as a response to the seizure or restriction of property rights belonging to Russian owners abroad.
The Putin temporary management decree provides the legal basis for the latest decisions involving Japan Tobacco’s Russian subsidiaries and other foreign-linked businesses.
The November 6 presidential decree marks another expansion of Russia’s temporary management measures involving Japan Tobacco Russian assets. With Pereslavl-Tobacco, JTI Innovative Products LLC and JTI Russia LLC added to the list, JSC Industrial Assets has been assigned management responsibilities over additional parts of the company’s Russian business structure.
The decisions signed on November 5 and November 6 highlight the continuing application of Russia’s foreign asset management framework. The Times of Russia will continue covering developments involving international companies and their business operations in the country.
