--- title: "Putin Transfers Four Factories of Japanese Tobacco Giant JTI Under State Control" description: "Putin signed a decree transferring four Russian JTI factories to the management of state company Industrial Assets. Tokyo has already expressed a protest through diplomatic channels." date: 2026-11-06T03:23:43.886Z lang: en url: https://xab.info/en/posts/putin-transfers-jti-factories-under-state-control tags: [jti, japan-tobacco-international, putin, russia, japan, tobacco, state-control, sanctions] author: "Alexander Buran" publisher: "XAB.info" --- # Putin Transfers Four Factories of Japanese Tobacco Giant JTI Under State Control ![Russian President Vladimir Putin speaking during an official event](https://xab.info/media/2026/11/06/putin-peredal-fabriki-jti-pod-gosudarstvennyj-kontrol/putin-peredal-fabriki-jti-pod-gosudarstvennyj-kontrol-1.webp) ## Key Points - By a decree dated November 5, 2026, JTI shares in four Russian tobacco factories were transferred to Industrial Assets JSC - Enterprises in Saint Petersburg, Rostov-on-Don, Lipetsk, and Leningrad regions, employing about 4,000 people, came under control - JTI controls about 40% of the Russian cigarette market and has invested about $4.6 billion in the Russian Federation over 20+ years - The Japanese government expressed a protest and demanded the decision be revoked - This is another case of foreign business assets transferring to state control after 2022 On November 5, 2026, Russian President Vladimir Putin signed a decree transferring shares of Japanese company Japan Tobacco International (JTI) in four Russian enterprises to the management of Industrial Assets JSC. Tobacco factories in Saint Petersburg, Rostov-on-Don, Lipetsk, and Leningrad regions fell under state control. Around 4,000 people work at these enterprises and in the company's offices. The decree does not explain the reasons for this decision. ### Largest Player in the Russian Tobacco Market Japan Tobacco International has been operating on the Russian market since 1999 and controls about 40% of the local cigarette market. In 2018, the company acquired the Ukrainian manufacturer Donskoy Tabak, making it the largest cigarette producer in the country. In Russia, JTI produces goods under international brands Winston, Glamour, Camel, LD, and Sobranie, as well as local brands Peter I, Russky Stil, and Donskoy Tabak. According to company profile data, over more than 20 years of presence in the Russian Federation, Japan Tobacco Group has invested about $4.6 billion in the Russian business. ### Tokyo's Reaction and JTI's Position The Japanese government has already expressed a protest to Russia through diplomatic channels and demanded the cancellation of the decision. Japanese Finance Minister Satsuki Katayama emphasized that Tokyo consistently urges Moscow not to violate the interests of Japanese citizens and companies. JTI stated that it is aware of the decree and is assessing the situation, naming the protection of stakeholder interests, primarily its employees, among its priorities. ### Part of Systemic Practice of 'External Management' The transfer of JTI's assets has become another instance of the Kremlin taking control of Russian enterprises belonging to foreign businesses that continued operating in the country after the full-scale invasion of Ukraine in 2022. Previously, similar decisions affected Swiss food concern Nestlé, German retail chain Metro, and French retailers Auchan and Leroy Merlin. Moscow explains such steps as a response to Western sanctions and the freezing of Russian assets abroad. Formally, it is about temporary management, but foreign owners effectively lose control over enterprises without their consent. Putin previously allowed for the possibility of returning assets to former owners under 'favorable conditions'. ### Context of Deteriorating Russian-Japanese Relations The decree on JTI came against the backdrop of an overall cooling of relations between the two countries. Recently, Russian special services detained Japanese journalist Yuki Imai on suspicion of espionage; the Japanese side rejected the accusations. After 2022, JTI did not leave the Russian market, but suspended new investments in production and marketing. Thus, the tobacco giant has become another major foreign player whose Russian assets have passed under the actual control of the state. ## Fact-Check & Sources - [Путин забрал у японского табачного гиганта четыре фабрики в России](https://www.rbc.ua/ukr/news/putin-zabrav-ponskogo-tyutyunovogo-giganta-1793934766.html) - The primary source contains the full text of the decree, the list of factories, data on market share, investments, JTI's reaction, and the Japanese government's stance. All facts in the article were verified against this source. ## FAQ ### Which specific JTI enterprises were transferred to state control? JTI shares in four tobacco factories in Saint Petersburg, Rostov-on-Don, Lipetsk, and Leningrad regions were transferred to the management of Industrial Assets JSC. ### How many people work at the affected enterprises? About 4,000 people work at JTI enterprises and offices in Russia. ### What is JTI's share of the Russian cigarette market? Japan Tobacco International controls approximately 40% of the Russian cigarette market. ### How did the Japanese government react? Tokyo expressed a protest to Russia through diplomatic channels and demanded the decision be revoked. Japanese Finance Minister Satsuki Katayama stated that Japan consistently urges Moscow not to violate the interests of its citizens and companies. ### Is this an isolated incident? No. Previously, similar decisions affected Nestlé, Metro, Auchan, and Leroy Merlin. Moscow explains such steps as a response to Western sanctions.