Japan Tobacco's Russian Operations Placed Under Temporary Administration — Update

By Kosaku Narioka

All of Japan Tobacco's entities in Russia have been placed under temporary administration by a Russian company, the Japanese tobacco maker said.

Three additional Japan Tobacco entities in Russia have been placed under "temporary administration" under a presidential decree issued Friday, the company said Monday.

The move followed an order by Russian President Vladimir Putin late Thursday to place Japan Tobacco's Russian factories under the temporary management of local company Industrial Assets.

One of the three newly affected entities is involved with sales and marketing, a Japan Tobacco spokeswoman said.

The company said it was reviewing the impact of the orders on its Russian operations and assessing their potential effect on its financial results. Its Russian business continues to operate, it added.

Japan Tobacco's Russian business had about 1.5 trillion yen, equivalent to $9.46 billion, in assets, including goodwill and about Y360 billion in cash and deposits, as well as roughly Y200 billion in liabilities at the end of September, the company said.

Japan Tobacco expects Russia to account for about 10% of the company's revenue and 25% of its adjusted operating profit in 2026.

The Japanese company was previously a state-owned monopoly, but the government held just under 38% of its shares at the end of 2025.

The latest moves mark an escalation in Russian measures against Japanese businesses following Tokyo's support for Ukraine and participation in Western sanctions against Moscow over its 2022 invasion.

Japan Tobacco, whose brands include Winston and Camel, is among Russia's largest tobacco companies, with a market share of nearly 40%.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 08, 2026 23:43 ET (04:43 GMT)