Russian President Vladimir Putin has placed the assets of Japan Tobacco International in Russia under temporary management, according to a decree published today, making the company the latest foreign business to lose control of its local operations amid the Kremlin’s escalating crackdown.
The decree stipulates that JTI’s stakes in four businesses in Russia are to pass under the management of Russian company Industrial Assets. It does not specify the reason for the decision, although the Kremlin has linked similar moves in the past to the conduct of countries it describes as “unfriendly”.
The news immediately hit Coca-Cola HBC shares on the Greek stock market. The stock plunged nearly 13% to 51.3 euros.
There is another development, too. The Russian newspaper Kommersant has revealed that Bochkari has asked Vladimir Putin to place two Coca-Cola HBC companies in Russia under temporary external management: Multon and Multon Partners.
The report confirms four key points:
- The request was submitted in mid-October 2026.
- Bochkari is asking to take over the management of the companies itself.
- The request was referred to the Russian government, where it has secured partial support from relevant deputy prime ministers, according to the newspaper.
- Putin has not announced a decision on Multon. This is a request, not a seizure or change of management that has already taken place.
In Russia, Coca-Cola HBC has 10 soft drinks and juice plants, with a total capacity of 2.2 billion litres a year. They include three in Moscow and one in Rostov, near the border with Ukraine.
Revenue: about 14% of total revenue in 2025. BNP Paribas Exane estimates that Russia will account for around 30%–40% of operating profit and earnings per share in 2026.
In early July 2026, cash holdings in Russia stood at 1.04 billion euros, up from 850.2 million at the end of 2025. About 85% is held in roubles. Dividends from subsidiaries to shareholders in “unfriendly” countries are paid only in roubles, into special blocked “Type C” accounts at a Russian bank. In practice, the money is trapped.
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JTI, a subsidiary of Japan Tobacco Inc. (2914.T), describes itself as Russia’s largest tobacco products producer by sales volume. It did not immediately respond to a request for comment.
As Reuters notes, the decree follows Russia’s decision in September to place the assets of Swiss food giant Nestlé, German wholesaler Metro AG and French retail chain Auchan under temporary management.
In October, Moscow took control of the Russian assets of four more European companies, citing European countries’ support for Ukraine and what it described as the illegal expropriation of Russian property.
In October, Russia’s Foreign Ministry said it regarded a Japanese company’s sale of drones to Ukraine as a hostile act and warned of a harsh response.