TOKYO (Reuters) – Japan Tobacco (JT) said on Thursday it was considering selling its Russia operations after suspending investment and marketing activities in the country last month following Moscow’s invasion of Ukraine.
The announcement by JT, market leader in Russia, came after it said in March it would continue manufacturing in the country, where it has four factories and 4,000 employees.
That announcement drew criticism after many global brands pulled out over the invasion of Ukraine and governments, including Japan, levied heavy sanctions against Moscow. Russia calls its action in Ukraine a “special operation”.
A JT spokesperson said the company is considering various options for its Russian operations, but could not comment on potential buyers for the stake. In the last fiscal year Russia contributed about 8% of JT’s group revenue and 15% of adjusted operating profit.
Japan’s Ministry of Finance is the biggest shareholder in JT, holding one third of its shares, which deliver about $1 billion in dividend revenue to the government each year.
(Reporting by Rocky Swift; Editing by Jacqueline Wong and Kenneth Maxwell)
