Russian President Vladimir Putin issued a decree on Thursday placing the Russian operations of Japan Tobacco International (JTI) under state control. The mandate directs the transfer of the company's assets to a state-linked holding firm known as AO Promyshlennye aktivy. This action impacts JTI's manufacturing facilities across several key regions, including St Petersburg, Rostov-on-Don, the Lipetsk region, and the Leningrad region.
As the largest cigarette manufacturer in Russia, JTI commands approximately 40% of the domestic market. The company, which maintains its headquarters in Geneva, has operated in Russia since 1999 and expanded its footprint significantly in 2018 through the acquisition of local producer Donskoi Tabak. JTI currently employs roughly 4,000 people within Russia and produces a wide range of international labels, such as Winston, Glamour, Camel, LD, and Sobranie, alongside domestic brands including Pyotr I, Russky Stil, and Donskoi Tabak. According to a company profile updated in November 2025, the JT Group has invested $4.6bn into its Russian operations over the past two decades.
Following Russia's full-scale invasion of Ukraine in 2022, JTI opted to remain in the country, though it suspended further investments in marketing and production. Moscow has characterized the current move toward external management as a retaliatory measure against sanctions imposed by foreign nations. This mechanism involves the appointment of state-linked administrators to manage assets without the consent or compensation of the foreign owner, effectively transferring control to the Russian state.
The seizure occurs against a backdrop of escalating tensions between Moscow and Tokyo. Last month, Russia arrested Yuki Imai, a journalist for the Japanese newspaper Hokkaido Shimbun, on espionage charges. While the Russian Foreign Ministry has alleged that Tokyo uses journalists for intelligence gathering, Japan has denied these accusations. Tensions are further complicated by a long-standing dispute over the Chishima Islands and Japan's decision to join certain Western sanctions related to the conflict in Ukraine.
JTI is the latest major international firm to have its Russian assets placed under state management, joining other entities such as Swiss food giant Nestlé, German retailer Metro, and French retailers Auchan and Leroy Merlin. Putin stated on 1 October that this management process provides Russia with tools to respond to potential future nationalization of Russian assets abroad, while theoretically leaving the door open for returning control if conditions were to improve.
