As Russia's military invasion of Ukraine continues, JT = Japan Tobacco has revealed that it is considering reviewing its business in Russia, which manufactures tobacco, including sales.
This was revealed by JT on the 28th at an online briefing session for investors regarding financial results.
He pointed out that there is a growing possibility that the Russian business will be hindered by stable activities due to supply chain restrictions due to the prolonged military invasion of Ukraine and restrictions on the settlement of funds due to economic sanctions.
On top of that, we are considering reviewing the business, including the sale, in the future.
JT has expanded its business in Russia, which is one of the world's leading markets, such as acquiring a Russian tobacco maker for about 190 billion yen in 2018, and currently manufactures tobacco at four factories.
However, due to the tightening situation in Ukraine, new investment in Russia and advertising activities in Russia have been canceled since March.
This time, the company mentioned the possibility of a more in-depth response, but only stated that "details are undecided" regarding the method and timing of business sale.
Koji Shimayoshi, Vice President of JT International, a subsidiary in charge of overseas business, said, "We are beginning to consider including transferring the Russian business to a third party in order to continue employment of employees. About the impact of the military invasion on business performance We are also scrutinizing. "