Japan demands Russia reverse takeover of Japan Tobacco assets
Tokyo lodged a formal protest Friday after Moscow placed four subsidiaries under temporary Russian management, a move that deepens diplomatic friction between the two nations.
By Mei Lin ·
Japan has formally protested to Moscow following Russia’s decision to place four Japan Tobacco Inc. subsidiaries under the temporary control of a Russian firm. Japanese officials demanded an immediate reversal of the presidential order on Friday, citing the need to protect the legitimate interests of Japanese businesses and nationals operating within Russia.
Chief Cabinet Secretary Minoru Kihara confirmed that senior government officials traveled to Moscow to join the Japanese ambassador in lodging the complaint. Kihara stated that the move was intended to ensure that the rights of Japanese entities were not compromised by the sudden shift in management.
This dispute marks a recent escalation in tensions between Tokyo and Moscow. Diplomatic friction has increased since Russian President Vladimir Putin visited Iturup Island in August. The island is one of four territories off Japan’s northern coast that Russia controls, though Japan also claims ownership. The Soviet Union seized the Kuril Islands in the final days of World War II, and the unresolved territorial dispute continues to prevent the two countries from signing a peace treaty.
Relations deteriored further in mid-October when Russian authorities arrested a Japanese journalist from a Hokkaido newspaper on suspicion of spying. Following Tokyo’s demands for an explanation and consular access, Japanese officials met with the journalist in late October and confirmed he was in good health.
Japan Tobacco Inc. said in a statement that it is gathering information and assessing the potential impact of the temporary management order. The company noted that it is currently considering its response to the situation.
Economy and Trade Minister Ryosei Akazawa noted that Russia has increasingly placed the assets of Western companies under temporary control since September. Akazawa said, “To be honest, we have been cautious,” and added that his ministry would continue communicating with the Russian government to protect Japanese corporate assets.
Finance Minister Satsuki Katayama, whose ministry holds a 37.55% stake in Japan Tobacco, told reporters that she plans to cooperate closely with other ministries and the company. She stated that her office will respond appropriately while monitoring the development of the situation.
