Russia Targets Seven Japan Tobacco Units
Moscow's temporary management move puts Japanese firms' Russian operations under government control.
Updated on Nov. 11, 2026 in Japanese Food
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The Russian government has designated seven local subsidiaries of Japan Tobacco Industry as temporary management targets, stripping the company of management rights over them. The action is part of a broader pattern of asset control affecting Japanese firms operating in Russia.
Why it matters
Japanese companies now face a dilemma between withdrawing from Russia and staying amid asset confiscation measures. Russia's designation of Japan as a non-friendly country has raised uncertainty for the roughly 65 Japanese companies still operating there.
Non-friendly-country companies must sell Russian subsidiaries below 40% of market value and pay Russia 35% of market value, while Japan Tobacco's Russian net assets are about 1.3 trillion yen. How long the temporary management will last has not been disclosed.
The players
Japan Tobacco Industry
A major Japanese tobacco and food company whose seven Russian subsidiaries were placed under Russian temporary management.
Ajinomoto
A Japanese food and amino acid manufacturer that halted local food sales in Russia after 2022 while keeping its agricultural materials and research business there.
The details
Russia designated Japan as a non-friendly country and region after Japan joined sanctions following its 2022 invasion of Ukraine. Ajinomoto halted local food sales in Russia immediately after the invasion but has kept selling agricultural materials and conducting fermentation research there.
Timeline
2022: Russia invaded Ukraine, and Ajinomoto halted local food sales in Russia.
November 9, 2026: Ajinomoto's president discussed the company's Russia business in an earnings announcement.
November 11, 2026: The Yomiuri Shimbun reported on Japanese companies' Russia dilemma.
Industry Dynamics
The move follows the precedent set by Carlsberg and Danone, which took multi-trillion-won losses when forced to sell Russian local assets at low prices. Japanese firms now face the same choice between a discounted exit and staying under asset control.
Consumers in Japan and abroad may see changes in product availability if Japanese food and tobacco companies scale back or restructure Russian operations. The companies themselves face uncertain timelines for how long local operations can continue.
The takeaway
Japanese companies in Russia are weighing exit costs against the risk of staying under government asset control. The seven Japan Tobacco subsidiaries show that the choice is no longer hypothetical.
Further reading
For more on the Japanese companies involved, see the Japanese Food section.
Source note: This article includes information reported by 조선일보.
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