According to a report from Reuters on April 28th, Japan Tobacco Inc. (JT) announced on Thursday that it has suspended its investment and marketing activities in Russia last month after the invasion of Ukraine by Moscow. Currently, the company is considering selling its business in Russia.
Japan Tobacco Inc (JT) is the leading player in the Russian market and announced in March that it will continue production in Russia, where it operates four factories with 4,000 employees.
After many global brands pulled out of Ukraine due to its invasion, and various governments, including Japan, imposed severe sanctions on Moscow, this announcement has received criticism. Russia has referred to its actions in Ukraine as "special operations.
A spokesperson for JT has stated that the company is currently considering various options for its business in Russia but cannot provide any comments regarding potential buyers of its shares. In the previous fiscal year, Russia accounted for approximately 8% of JT Group's revenue and 15% of its adjusted operating profit.
The Japanese Ministry of Finance is the largest shareholder of JT, holding one-third of its shares and providing approximately $1 billion in dividend income to the government every year.
Source: Reuters
Japan Tobacco is reportedly contemplating the possibility of selling its operations in Russia. The move would divest the company of one of its key markets as it seeks to reposition its global business following declining consumption rates. The decision is expected to be made next year.
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