Putin expands Japan Tobacco administration

Russian President Vladimir Putin has brought three additional Japan Tobacco International (JTI) companies under temporary administration, extending an order issued earlier this week. The new decree covers firms owned by JTI Investments Sarl, which Interfax described as import, management and holding businesses.

The initial order had transferred stakes in four JTI businesses to Russian company Industrial Assets. The Russian operation is the Japan Tobacco Group’s largest tobacco business in the country, contributing about 10% of group revenue and roughly 25% of operating profit. JTI said it was reviewing the decision and its available options, while Industrial Assets’ head said production and employee obligations would be maintained. The decrees did not state a reason for the move.