Japan Tobacco halts new investment and advertising in Russia

In early March 2022, soon after Russia's full-scale invasion of Ukraine, Japan Tobacco (JT), the Tokyo-based tobacco group, announced a change of course in its Russian business. On 10 March the company said it would suspend new investment and advertising activity in Russia.

JT did not leave the market. It said it would continue operating in Russia, where it had a large presence through its international arm, JT International, and local factories producing well-known cigarette brands. The company pointed to its responsibility to employees and to the continuity of its business there.

The decision reflected the pressure on foreign firms after Western countries and Japan imposed sanctions on Russia. Many companies suspended or ended operations, while others, including JT, chose a middle path of limiting expansion while staying in place. That position later drew scrutiny, as the company kept its Russian assets for years and became exposed to the Russian state's growing control over foreign-owned businesses.