JTI is studying the consequences of the transfer of its Russian enterprises to temporary management

The company is assessing the situation

The Russian division of Japan Tobacco Inc. (JTI) is studying the consequences of the transfer of its enterprises to the temporary management of JSC Industrial Assets. As reported by Life.ru, the company's press service said that specialists are looking into the situation and assessing further actions, with JTI intending to prioritize the interests of its employees and business partners. The company has not yet specified concrete steps: «We have familiarized ourselves <...>. At present, the company is analyzing the situation and considering possible actions, giving priority attention to employees and partners. No further comments will be made at this time,» JTI representatives were quoted as saying.

What the decree affected

The decision affected JTI's stakes in several enterprises at once: the company's assets in Donskoy Tabak, Pereslavl-Tabak, JTI Yelets, Cres Neva and Petro were transferred to the temporary management of JSC Industrial Assets. According to Life.ru, the decree on transferring all of JTI's shares in the authorized capital of Petro was signed by Russian President Vladimir Putin; it concerns an enterprise associated with one of Russia's largest tobacco factories in St. Petersburg, which produces Winston, Camel, LD and other cigarette brands.

The scale of JTI's business in Russia

Japan Tobacco Inc. is among the three largest tobacco producers in the world, and roughly a third of the company belongs to the Japanese government. JTI has been operating on the Russian market since 1999 and ranks first among cigarette manufacturers. The company produces goods under the international brands Winston, Mevius, Camel, Sobranie, Glamour and LD, as well as the Russian brands Russky Stil, Pyotr I and Troika. Nothing is yet known about the company's further actions after the transfer of its assets — JTI limited itself to a statement that it is analyzing the situation.