Russia has placed four local factories of Japan Tobacco International under temporary Russian control by presidential decree. Following the decision, the tobacco company’s share price on the Tokyo Stock Exchange plummeted by a record amount of more than 19 percent.
By presidential decree, Vladimir Putin has placed four Russian subsidiaries of Japan Tobacco International (JTI) under temporary Russian administration. The measure affects two cigarette factories and two tobacco processing plants in Saint Petersburg, Rostov, and Yelets, which employ a total of about four thousand people. The management of the factories has been entrusted to a Russian organization called Promyshlennye Aktivy.
JTI and Philip Morris International remained in the local market after the outbreak of the war in Ukraine, unlike Imperial Brands and British American Tobacco, which had previously sold their Russian interests. Although JTI retains ownership on paper, the administrators appointed by the Moscow leadership will decide on operations indefinitely. Following the announcement, Japan Tobacco shares fell to a historic low, dropping 19.3 percent on the Tokyo Stock Exchange.
Russia previously applied similar administration measures to the local interests of Danone and Carlsberg, which ultimately led to sales that resulted in significant losses. Due to the tightening of Russian regulations, foreign investors can now recover at most five percent of the value of their assets in the event of an exit.
In brief
- Russia has placed four JTI factories under temporary local administration by decree.
- JTI remained in the market after the outbreak of the war, where it holds a market share of about 35 percent.
- Following the news, the tobacco company’s shares plunged 19.3 percent on the Tokyo Stock Exchange.
- Moscow had previously applied the mechanism to Western food and beer producers.
Source: VapingPost FR (fr.vapingpost.com)
This summary was created by artificial intelligence based on the original article.