Japan has demanded that Russia immediately release the assets of Japan Tobacco seized in the country, as relations between Tokyo and Moscow sour.
A decree issued by Russian President Vladimir Putin on Thursday placed the assets under “temporary administration” and handed control of the company’s Russian operations to a Russian company called Industrial Assets. Japan Tobacco said four of its manufacturing subsidiaries had been placed under temporary control and that it was assessing possible actions.
Japanese government spokesman Minoru Kihara said two senior officials visiting Russia, together with Japan’s ambassador, had lodged a protest with the Russian government and demanded that the measure be withdrawn immediately. Economy, trade and industry minister Ryosei Akazawa said Tokyo had been on alert to the risk to Japanese interests in Russia.
Japan Tobacco, one of the world’s biggest tobacco companies, is reported to hold around 40% of the Russian cigarette market. The company said it had continued operating in Russia while complying with all domestic and international sanctions and regulations.
Moscow has taken similar steps against other foreign firms under rules it describes as retaliation for international sanctions over its war in Ukraine, with Swiss food group Nestle and French retailer Auchan among the latest to effectively lose their Russian operations.
The seizure comes after Russia’s FSB security service arrested Japanese journalist Yuki Imai of the Hokkaido Shimbun newspaper last month on espionage allegations.