A Nov. 5 decree signed by Russian President Vladimir Putin places stakes in four companies linked to Japan Tobacco International (JTI) under temporary administration and names Russian joint-stock company Industrial Assets as manager.
The decree lists two interests in JTI Donskoy Tabak, 99.9999% and 0.0001%, and three in JTI Yelets: 65.64%, 18.85% and 15.51%. Kres Neva and Petro each appear with a 100% stake. The order updates the schedule created under Russia’s 2023 Presidential Decree No. 302 and takes effect on its official publication date. The decree gives no reason for the decision and does not specify whether output, staffing or day-to-day operations will change.
JTI’s Russia site describes Petro and JTI Donskoy Tabak as plants that make finished products, while JTI Yelets and Kres Neva process tobacco. The company lists four factories in Russia and a workforce of about 4,000.
In March 2022, Japan Tobacco Inc. announced that JTI would halt new investment and marketing activity in Russia and not proceed with the planned Ploom X heated tobacco launch. It also said Russian employees would remain with the company for the foreseeable future.
The decree follows an October measure placing a Sonoco-owned Russian packaging business under temporary administration, covered in EconoTimes’ report on the October decree.
Reuters reported that JTI, in an emailed response, said it was aware of the decree and was reviewing its options, while prioritizing stakeholders, especially employees. The statement gave no timetable for a decision.
