Japan Protests Russian Seizure of Japan Tobacco Assets

The Government of Japan lodged a formal protest against Russia after President Vladimir Putin signed a decree placing all four of Japan Tobacco's Russian manufacturing operations under temporary state control. Finance Minister Satsuki Katayama demanded that Moscow reverse the move, stating that the interests of Japanese citizens and companies must not be undermined.

Japan Tobacco holds nearly 40% of the Russian market and generates approximately a quarter of its profit there. Following the announcement, the company's shares dropped 19% in Tokyo. A company spokeswoman clarified that temporary administration does not constitute nationalization or requisition.

The seizure occurs amid heightened tensions regarding Japan's support for Ukraine and its increased military spending. The Japanese government maintains an ownership stake of more than one-third of Japan Tobacco.