Japan Demands Reversal of Russian Control Over Tobacco Subsidiaries
Tokyo sent senior officials to Moscow to protest presidential orders placing four Japan Tobacco units under Russian management.
By Samira Khalil ·
Japan formally protested to Russia on Friday after Moscow issued an order placing four subsidiaries of Japan Tobacco Inc. under the temporary management of a Russian firm. Japanese officials stated that the government demanded the immediate withdrawal of the measure to protect the legitimate interests of Japanese nationals and businesses operating in the country.
Chief Cabinet Secretary Minoru Kihara told reporters that the government is aware of President Vladimir Putin's directive affecting the cigarette maker's Russian operations. Senior Japanese government officials traveled to Moscow to join the ambassador in lodging the protest. Kihara said the delegation met with Russian counterparts to ensure that the assets of Japanese companies are not violated.
The incident marks a new point of friction between the two nations. Tensions have increased since Putin visited Iturup in August. That island is one of four Russian-controlled territories off Japan's northern coast that Tokyo also claims. The Soviet Union seized the Kuril Islands at the end of World War II. This territorial dispute has prevented the two countries from signing a peace treaty to formally end their hostilities.
Disputes escalated in mid-October following the arrest of a Japanese journalist from a Hokkaido newspaper 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. The tobacco takeover adds to the list of recent diplomatic issues between the two governments.
Japan Tobacco released a statement on Friday confirming that its four manufacturing subsidiaries in Russia are under the temporary control of a Russian firm by presidential order. The company said it was gathering more information and assessing the potential impact on the group. It noted that it is considering its response to the move.
Economy and Trade Minister Ryosei Akazawa said the government has been cautious regarding the growing number of cases since September in which Russia placed Western company assets under temporary Russian control. Akazawa said, "We will continue to communicate with the Russian government in order to protect the assets of the Japanese companies."
Finance Minister Satsuki Katayama addressed reporters on Friday. Her ministry holds a 37.55% stake in Japan Tobacco. She stated that she planned to respond appropriately by cooperating closely with relevant ministries and the company while watching the development.
