Putin places the remaining Japan Tobacco assets in Russia under temporary management

New decree on the transfer of assets

Russian President Vladimir Putin has placed under temporary management additional Russian assets owned by the structure of the international tobacco group Japan Tobacco Inc. (JTI). The relevant decree has been published on the official legal information portal, and Gazeta.Ru reports on it. 100% of the shares of the company Pereslavl-Tabak, as well as 100% of the stakes in the charter capitals of J.T.I. Innovative Products LLC and J.T.I. Russia LLC, have passed under the management of JSC Industrial Assets. All three assets belong to JTI Investments Sarl.

Second transfer within a few days

This is already the second measure against JTI in a short period: the day before, on November 5, Putin signed a decree transferring to external management of the same JSC Industrial Assets a number of other assets of the group in Russia — stakes in the companies Donskoy Tabak, Pereslavl-Tabak, JTI Yelets, Cres Neva and Petro. The new decree in effect covers the remaining JTI structures, including the parent company J.T.I. Russia; at the same time, Pereslavl-Tabak appears in both documents.

Tokyo's reaction

After the first transfer of assets Japan lodged a protest with the Russian government. The country's Finance Minister Satsuki Katayama stressed that Tokyo has consistently urged Moscow not to allow infringement of the legitimate interests of Japanese citizens and companies. 'In connection with the measure taken by the Russian side, a protest was expressed to the government of the Russian Federation through diplomatic and other channels, as well as a demand to urgently take measures, including revoking the decision,' the minister added. Earlier, former Russian President Dmitry Medvedev reminded Japan Tobacco about the harms of smoking after the transfer of its assets in Russia.