Japan Demands Russia Reverse Takeover of Tobacco Subsidiaries
Tokyo lodged a formal protest after Moscow placed four Japanese manufacturing units under the temporary control of a Russian firm.
By Natalie Cooper ·
Japan formally protested to Moscow on Friday after Russia placed four subsidiaries of Japan Tobacco Inc. under the temporary management of a Russian company. The Japanese government demanded that the measure be withdrawn immediately to protect the interests of its nationals and businesses.
Chief Cabinet Secretary Minoru Kihara confirmed that the Japanese government is aware of the presidential order issued by Vladimir Putin. He stated that senior government officials were sent to Moscow to join the Japanese ambassador in lodging the protest. Kihara said the delegation aimed to ensure that the legitimate interests of Japanese entities operating in Russia were not violated.
This dispute marks the latest friction between the two countries. Tensions have increased since Putin visited Iturup in August. Iturup is one of four islands off Japan's northern coast that Russia controls but Tokyo also claims. The Soviet Union originally seized these Kuril Islands in the final days of World War II. The ongoing territorial dispute has prevented Japan and Russia from signing a peace treaty to formally end their hostilities.
The current conflict follows earlier escalations in mid-October. A Japanese journalist from a Hokkaido newspaper was arrested in Russia on suspicion of spying. After Tokyo demanded an explanation and humane treatment, consular officials met the journalist in late October. They confirmed he was in good health, though the dispute over the tobacco assets has now emerged as a new point of contention.
Japan Tobacco announced in a statement on Friday that a presidential order had placed its four manufacturing subsidiaries in Russia under the temporary control of a Russian firm. The company said it is currently gathering more information and assessing the potential impact on the group. It is also considering its official response to the move.
Economy and Trade Minister Ryosei Akazawa noted that this action follows a growing number of cases since September in which Russia has placed Western company assets under temporary Russian control. Akazawa told reporters that Japan has been cautious but will continue communicating with the Russian government to protect Japanese corporate assets. He stated, "To be honest, we have been cautious."
Finance Minister Satsuki Katayama also addressed the situation on Friday. Her ministry holds a 37.55% stake in Japan Tobacco. Katayama said she plans to respond appropriately by cooperating closely with relevant ministries and the tobacco company while watching the development.
Japan Tobacco is a major global cigarette manufacturer with significant operations in Russia. The temporary management order represents a direct intervention by the Russian state into the operations of a foreign corporation. The Japanese government maintains that the move requires immediate retraction to restore normal business conditions.
