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Putin Seizes Three More Japan Tobacco Businesses, Bringing Takeover to $3.7 Billion
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Russian leader Vladimir Putin has placed three additional subsidiaries of Japan Tobacco International (JTI) under Russian-appointed management, expanding Moscow’s takeover of the Japanese tobacco giant’s operations to seven companies, with the affected assets valued at up to $3.7 billion.
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According to The Moscow Times on November 7, the latest presidential decree transferred control of JTI Russia, Pereslavl-Tabak, and JTI Innovative Products to the Russian company Industrial Assets.
The decision follows a separate decree issued on November 5 that placed four JTI manufacturing and tobacco-related businesses under the same management structure.
Bloomberg reported that the newly affected companies include a holding entity, a cigarette distribution business, and an importer of electronic tobacco products and heated tobacco systems.
The earlier takeover covered Petro, JTI Donskoy Tabak, Kres Neva, and JTI Yelets, which collectively employ approximately 4,000 people. According to The Moscow Times, Russian industry analysts estimate the combined value of the affected assets at 250 billion to 300 billion rubles, or approximately $3.1 billion to $3.7 billion.
Industrial Assets was established in September 2026. Russian corporate records identify Sergei Dremov, a former member of the State Council of Russian-occupied Crimea, as one of its founders. His biography indicates that he served in Russian state security agencies between 2000 and 2016.
JTI has operated in Russia since 1999 and previously controlled up to 40% of the country’s cigarette market, selling brands including Winston, Camel, Sobranie, and LD. JTI has operated in Russia since 1999 and previously controlled up to 40% of the country’s cigarette market, selling brands including Winston, Camel, Sobranie, and LD.
Despite Russia’s full-scale invasion of Ukraine in 2022, the company remained in the country, suspending new investments before deciding in 2023 to continue operations.
The expanded takeover follows Japan’s formal protest over Moscow’s initial decision. On November 6, Tokyo demanded that Russia reverse the measure, while Japan’s Foreign Ministry raised the issue with Russian Ambassador Nikolay Nozdrev.
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