Japan has lodged a protest with Moscow after Russia placed four subsidiaries of Japan Tobacco Inc. under temporary Russian management, demanding the measure be immediately withdrawn. Japanese officials confirmed the development on Friday.
Chief Cabinet Secretary Minoru Kihara stated that the Japanese government is aware of the order signed by Russian President Vladimir Putin affecting the cigarette maker's operations in Russia. Senior Japanese officials and the Japanese ambassador to Russia have formally protested the action in Moscow, seeking to prevent the violation of legitimate interests of Japanese nationals and businesses, Kihara said.
This action marks the latest point of contention between the two nations. Tensions have been elevated since Putin visited Iturup, one of four islands off Japan's northern coast claimed by Tokyo but controlled by Russia, in August. The Soviet Union seized the Kuril Islands from Japan at the end of World War II, and the ongoing territorial dispute has prevented a formal peace treaty.
Further complicating relations, a Japanese journalist was arrested in Russia in mid-October on suspicion of spying. Following Tokyo's demands for an explanation, consular access, and humane treatment, Japanese consulate officials met with the journalist in late October and confirmed he was in good health.
Japan Tobacco confirmed in a statement that its four manufacturing subsidiaries in Russia were placed under the temporary management of a Russian firm by presidential order. The company is currently gathering more information, assessing its response, and evaluating the potential impact on the group.
According to Japan's Economy, Trade and Industry Minister Ryosei Akazawa, this move follows a pattern of Russia placing assets of Western companies operating in Russia under temporary Russian control since September. Akazawa noted that Japan has been cautious and will continue to communicate with the Russian government to protect Japanese corporate assets. Finance Minister Satsuki Katayama indicated that her ministry, which holds a significant stake in Japan Tobacco, plans to respond appropriately in cooperation with relevant ministries and the company.