Moscow places four Japan Tobacco factories in Russia under state control
By the AFREEQUE newsroom, based on Bénin Web TV
Vladimir Putin placed Japan Tobacco International's Russian operations under state control on 5 November; the company holds nearly 40% of the cigarette market. The decree covers four factories and about 4,000 employees, with management entrusted to a company linked to the Russian state.
Russian President Vladimir Putin on Thursday 5 November placed Japan Tobacco International's (JTI) Russian operations, the country's leading cigarette manufacturer, under state control. A decree entrusts their management to AO Promyshlennye aktivy, a company linked to the Russian state.
The measure covers four factories located in St Petersburg, Rostov-on-Don, and the Lipetsk and Leningrad regions, as well as about 4,000 employees. JTI holds nearly 40% of the Russian cigarette market and sells brands including Winston and Camel.
The placement under external management allows state-linked administrators to take effective control of the assets without the foreign owner's consent or compensation, while nominal ownership can remain foreign. JTI, based in Geneva, has been present in Russia since 1999 and acquired Donskoi Tabak in 2018.
After the invasion of Ukraine in 2022, the group maintained its operations in Russia while suspending new investments in production and marketing.
