Putin expands temporary administration of JTI's Russian assets
By the AFREEQUE newsroom, based on TimesLIVE and Sowetan
Russian President Vladimir Putin placed three more Russian companies of Japan Tobacco International under temporary administration, bringing the number of companies concerned to seven. The entities, owned by JTI Investments Sarl, handled import, management and holding activities, according to Interfax.
Russian President Vladimir Putin has extended temporary administration to three more Russian companies of Japan Tobacco International (JTI), a subsidiary of Japanese group Japan Tobacco and Russia's leading tobacco manufacturer. A decree published overnight added the three entities, all owned by JTI Investments Sarl, to the four whose stakes had been placed on Thursday under the administration of Russian company Industrial Assets, according to Interfax.
The three companies operated as import, management and holding companies. Anton Pivovarov, director of Industrial Assets, told Russian media outlet RBC on Saturday that his company would seek to maintain production, preserve existing teams and honour its obligations to employees and business partners.
JTI, which markets Winston and Camel cigarettes among others, said after the first decree that it had taken note of the decision and was “assessing the situation and our options, while prioritising our stakeholders, particularly our employees”. The Japanese state holds about 37% of Japan Tobacco's capital. Russian operations account for about 10% of the group's revenue and nearly 25% of its operating profit.
The decrees do not specify the reasons for the measure, but the Kremlin has previously linked similar seizures to actions by countries it considers hostile.
