Japan has formally protested Russia’s seizure of Japan Tobacco International’s local assets, marking a new low in already strained bilateral relations. Trade Minister Ryosei Akazawa confirmed the protest was delivered by senior officials in Russia, urging the Kremlin to revoke the measures immediately. Under a decree signed by President Vladimir Putin, JTI’s Russian units were transferred to local firm JSC Industrial Assets in a temporary administration.
The Japanese government owns roughly a third of Japan Tobacco. Relations have deteriorated since Putin’s August visit to a disputed island near northern Japan, followed by the detention of a Japanese journalist on espionage charges and Russia’s alignment with China in labeling Prime Minister Sanae Takaichi a regional security threat. Russia has also retaliated against Japan’s support for Ukraine, including financial and non-lethal military aid.
In October, Tokyo imposed additional sanctions citing the Ukraine situation. Akazawa noted that Russian authorities have increasingly placed Western assets under temporary control, and Japan has been preparing for such moves. The seizure follows similar actions against Nestlé SA and Auchan, targeted for their countries’ support of Ukraine.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing