Vladimir Putin on Friday ordered the seizure of additional assets belonging to Japan Tobacco Inc., expanding a prior decree that had targeted the company’s four Russian units. The decision, announced in Moscow, places the shares of three of those units under temporary management of a Russian company, according to a presidential decree published on Friday.
Kyodo News reported that the new order came a day after Putin signed a decree that had already seized assets of the Japanese company’s four units in Russia. The earlier decree was aimed at removing the company’s presence from Russian markets as part of a broader national policy affecting foreign investors.
According to the new decree, all shares in three Japan Tobacco units are now placed under temporary management of a Russian enterprise. The decree further specifies that these assets will be overseen by a state‑appointed entity, effectively transferring control from the Japanese parent company to a Russian operator.
Japan Tobacco is a global tobacco firm headquartered in Tokyo. The seizure means that its Russian operations, including production facilities and marketing entities, are now under Russian administrative authority. Employees and local stakeholders of the affected units now report to a Russian oversight body, potentially affecting labor relations and operational decisions.
The decree was formally published in the official government gazette, marking the final step in the executive’s execution of the asset seizure. The publication means that the order becomes enforceable and publicly documented, which in Russia is the common legal mechanism for activating presidential decisions.
In a separate report, The Standard noted that “Russian President Vladimir Putin has signed a decree to temporarily seize the Russian assets of Japan Tobacco International, making it the latest foreign …” This phrasing echoes the Kyodo account that the seizure is temporary, pending further governmental action.
The seizure is part of a series of Russian executive measures that temporarily transfer control of foreign business assets. While the decree emphasizes temporary management, it implicitly grants the Russian state substantive operational authority over the three units. As a result, the companies’ financial and managerial decisions are now subject to Russian legal and regulatory frameworks.
For Japan, the move signals a significant shift in its business environment in Russia. The company’s shareholders and Japanese investors face uncertainty regarding the future of their Russian holdings. In addition, the seizure underscores existing tension between Moscow and Tokyo over business confidence, as noted by analysis of broader diplomatic strains in other news outlets.
Overall, the decree demonstrates the Russian president’s continued use of executive power to reallocate control of foreign-owned companies. The move is expected to prompt further scrutiny by international business communities and may influence future diplomatic negotiations. The decree’s stipulation of temporary management highlights the ongoing uncertainty surrounding the long‑term status of the seized assets.
