Putin grabs Japan Tobacco's Russian plants, stock points to 19% slide

Japan Tobacco's shares got walloped Friday after Vladimir Putin moved on four of its Russian units. Bid and ask both sat at ¥6,269 at 11:30 a.m. Tokyo time, pointing to a 19.3% slide from Thursday's record close of ¥7,769. The broader market was down 5.7% by midday.

A decree signed on November 5 hands four Japan Tobacco International businesses to Russian company Industrial Assets under temporary management. The affected operations — JTI Donskoy Tabak, JTI Yelets, Kres Neva and Petro — run manufacturing plants inside Russia. Moscow didn't say why.

The sting is heavy: Russia supplies about 10% of the group's revenue and roughly 25% of its operating profit, per Investing.com. That makes the seizure a direct threat to Japan Tobacco's overseas machine.

Japan Tobacco confirmed the four subsidiaries are now under temporary management and said it is sizing up the fallout and its options. Crucially, the measure moves management control to a Russian-appointed administrator — it doesn't automatically transfer legal ownership.

Tokyo has protested through diplomatic channels and asked Moscow to reverse the move, which lands amid souring relations over Japan's sanctions tied to the Ukraine invasion. According to Investing.com, it is the latest in a run of Russian takeovers of foreign-owned businesses operating in the country.