Putin placed Japan Tobacco's assets in Russia under the temporary management of PJSC Industrial Assets

What the president decided

Russian President Vladimir Putin signed a decree transferring the shares of the international tobacco conglomerate Japan Tobacco Inc. (JTI) in Russian production facilities into the external management of PJSC Industrial Assets. The document was published on the official portal of legal information. The shares in the companies Donskoy Tabak, Pereslavl-Tabak, JTI Yelets, and Cres Neva are being placed under management. The decree enters into force on the day of its official publication.

Context: a series of transfers of foreign assets

This is not the only such decision in recent months. In mid-October, Putin signed a decreethat placed the Russian assets of flooring manufacturer Tarkett and four other foreign companies under the temporary management of LLC Management Company Center Capital. In September, the Russian assets of retailer Metro were transferred to the temporary management of UK Torg Rus. It was also previously reported that the president approved the procedure for transferring unclaimed deposits to the state. The transfer of JTI's assets fits into this sequence of decisions on the temporary management of foreign companies' businesses in Russia.

What is known about JTI

Japan Tobacco owns the cigarette brands Winston, Camel, LD, Sobranie, Richmond, Russky Stil, and Play. The fate of the brands themselves and the terms of managing the production facilities are not specified in the published reports; the decree entered into force immediately after publication, so the practical consequences for the enterprises will become clear as it is implemented.