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Russia Takes Control of Japan Tobacco Assets—Tokyo Demands Reversal
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Japan has formally protested Russia’s decision to place assets belonging to a Japan Tobacco subsidiary under temporary management and demanded that the measure be withdrawn immediately, NHK World reported on November 6.
Russia has increasingly used temporary management orders to take control of foreign-owned businesses from countries it deems “unfriendly.” In September, Moscow placed the Russian operations of Nestlé and Auchan under temporary administration, continuing a pattern of state takeovers targeting Western companies since 2023.
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The measure is based on a Russian decree introduced in April 2023 that allows assets owned by entities from countries Moscow designates as “unfriendly” to be placed under temporary management by the state or designated Russian companies.
Russia applies the “unfriendly” designation to countries that imposed sanctions following its full-scale invasion of Ukraine in 2022.
Chief Cabinet Secretary Minoru Kihara confirmed that Japanese officials had lodged the protest with Moscow after the Russian leader, Vladimir Putin, signed a decree placing assets held by JT International under the management of a Russian company, according to NHK World.
The order covers four JTI manufacturing facilities in Russia, located in St. Petersburg, the Leningrad region, Rostov-on-Don, and the Lipetsk region.
Kihara noted that Japanese officials currently visiting Russia had formally requested the measure be reversed to prevent damage to the legitimate interests of Japanese citizens and companies, according to NHK World.
Japan’s Foreign Ministry also raised the issue directly with Russian Ambassador Nikolay Nozdrev in Tokyo.
NHK World noted that companies from several Western countries have previously been placed under temporary Russian management, including businesses linked to French, Danish, and Swiss firms. Some companies later saw their assets sold to Russian owners at heavily discounted prices.
The dispute comes amid broader tensions between Moscow and Tokyo. In recent months, Putin visited Etorofu Island, one of the Russian-controlled islands claimed by Japan, while Russia’s Federal Security Service detained a journalist from The Hokkaido Shimbun Press in Sakhalin on suspicion of espionage.
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