Russian ruler Vladimir Putin has placed Japan Tobacco International’s (JTI) Russian operations under state control, transferring the company’s local assets by decree to the state-linked holding company AO Promyshlennye Aktivy.
Responding to the seizure, B4Ukraine Executive Director Nezir Sinani said: "Japan’s energy dependence on Russia, combined with the exposure of Japanese businesses operating in the country, could leave Tokyo more vulnerable to Kremlin pressure, including attempts to use corporate assets as leverage in exchange for sanctions relief.
Western governments must make responsible and swift corporate exits from Russia a priority, rather than allowing their companies’ private interests to hold national foreign policy hostage."
The decree covers JTI’s four tobacco manufacturing facilities in St Petersburg, Rostov-on-Don, the Lipetsk region and the Leningrad region.
JTI employs around 4,000 people in Russia and controls roughly 40% of the Russian cigarette market, making it the country’s largest tobacco manufacturer.
Its Russian product portfolio includes international cigarette brands such as Winston, Glamour, Camel, LD and Sobranie, alongside domestic brands Pyotr I, Russky Stil and Donskoi Tabak.
Russia has long been a lucrative market for international tobacco companies, with relatively high smoking rates and billions of dollars in tobacco-related tax revenues.
JTI is one of the largest foreign companies still operating in Russia. Its Russian business generated around $6.7 billion in revenue in 2025, according to KSE.
JTI joins a growing list of foreign companies whose Russian assets have been placed under state control through the same mechanism, including Swiss food giant Nestle, French retailers Auchan and Leroy Merlin, and German retailer Metro.
B4Ukraine urges international companies to take immediate steps to cut ties with Russia and pursue a responsible exit. B4Ukraine also calls on EU and G7 governments to set clear standards for companies operating in Russia, require greater financial transparency, and take measures to prevent their assets and operations from being used to support Russia's war against Ukraine.