Putin signed a decree on November 5 placing four Russian manufacturing companies owned by Japan Tobacco (JT) under the “temporary administration” of a Russian company. JT shares hit the limit-down price on November 6, falling 19.3% in a single day, while the Nikkei 225 fell 5.96% that same day. Russia accounts for about 25% of JT’s adjusted operating profit. Former President Medvedev mocked the move on X, saying, “Smoking kills anyway.” (Previously: Asian markets battered! South Korean stocks hit circuit breakers, SK Hynix plunges 11%, Nikkei enters bear market as AI sell-off spreads) (Background: US deploys nuclear submarine to threaten Russia! Trump: Medvedev’s remarks were too provocative; I just want to stop the Russia-Ukraine war) Key points Putin signs decree placing four JT factories in Russia under temporary administration by a Russian company JT shares hit limit-down on Nov. 6, falling 19.3%; the Nikkei fell 5.96% the same day Russia accounts for about 25% of JT’s adjusted operating profit Japan Tobacco (JT) hit the limit-down price on the Tokyo Stock Exchange on November 6, closing at 6,269 yen, or about NT$1,297 (converted using the exchange rate on November 7). The shares fell 1,500 yen in a single day, a drop of 19.3%. The trigger was a decree signed by Russian President Vladimir Putin on November 5, which placed four Russian manufacturing companies owned by JT under the “temporary administration” of a Russian company. JT had closed the previous day at 7,769 yen, up 5.23%, setting a new high for the year. According to the Sankei Shimbun, sell orders flooded in after the market opened on the 6th, and no trades were made in the shares all day. Only at the close were some buy and sell orders matched at the limit-down price, as required by regulations. The Nikkei 225 also plunged 3,643.13 points that day, a decline of 5.96%. The broader market’s losses weighed on JT, but its decline was more than three times as steep. The Sankei Shimbun noted that sell orders were mainly driven by investors’ concerns about the impact of the Russian business on operations. Dmitry Medvedev, deputy chairman of Russia’s Security Council and former president, also mocked the move on X. At 9:53 p.m. Taiwan time on the 6th, he posted in English: “Japan Tobacco’s stock plunged by a record 19.3% after its Russian assets were placed under temporary administration managed by a Russian firm following the Russian president’s decree. That’s something! And smoking kills anyway” Japan Tobacco’s stock plunged by a record 19.3% after its Russian assets were placed under temporary administration managed by a Russian firm following the Russian president’s decree. That’s something! And smoking kills anyway — Dmitry Medvedev (@MedvedevRussiaE) November 6, 2026 The company taking over was only registered in September According to The Moscow Times, the presidential decree named Industrial Assets as the temporary administrator, taking over four companies in Russia belonging to JT International (JTI). The report cited independent media saying the company was only registered on September 16. Its owner, Sergei Dremov, was previously an official with the Federal Security Service (FSB) in Kursk Oblast. Several companies in Russia are named Industrial Assets, and some have been involved in previous takeovers of foreign companies. In an official statement released on the 6th, JT confirmed that the four manufacturing companies had been placed under temporary administration. JT said the group had always complied with all applicable regulations and sanctions in Russia. It is currently gathering information to assess its options and the impact on the group. According to the Sankei Shimbun, the four companies mainly produce cigarettes, and there are no Japanese employees at their local factories. JT also said this was different from nationalization or confiscation by the Russian government, but that it was impossible to predict what would happen next. Putin previously said such takeovers were a reciprocal response to Western sanctions and the freezing of Russian state assets. He also said control could be returned when conditions were appropriate. According to a roundup by The Moscow Times, other foreign companies taken over this fall include Germany’s Metro, France’s Auchan, Switzerland’s Nestlé, and logistics company FM Logistic. Japanese government calls for measure to be withdrawn Japanese Finance Minister Satsuki Katayama said at a press conference on the morning of the 6th, “We have protested to the Russian government through diplomatic channels and other means, and urgently requested that the measure be withdrawn.” She said the government would work closely with relevant ministries and JT and take the necessary steps. Chief Cabinet Secretary Minoru Kihara also said that day that Japan had asked Russia to withdraw the measure as soon as possible. The Moscow Times noted that Japan-Russia relations have recently deteriorated significantly. Some analysts believe Moscow is seeking to punish Tokyo for supporting Ukraine and joining G7 sanctions against Russia. In October, Russia’s FSB arrested a Japanese journalist from the Hokkaido Shimbun on suspicion of espionage. The Hokkaido Shimbun and the Japanese government both denied the allegations. JT said it would immediately make an announcement if there were any developments that needed to be disclosed. Frequently asked questions Why did Japan Tobacco (JT) shares hit the limit-down price? On November 5, Putin signed a decree placing four of JT’s Russian manufacturing companies under the temporary administration of a Russian company. JT shares hit the limit-down price the following day, falling 19.3% to close at 6,269 yen, while the Nikkei fell 5.96% that same day. How important is the Russian market to Japan Tobacco? According to the Sankei Shimbun, Russia accounted for 10% of JT’s revenue in 2025 and 25% of its adjusted operating profit. In the third quarter of 2026, JT had a market share of about 35.5% in Russia, ranking first. Related coverage South Korean government lets investors hold on! Financing guarantee ratio exemption provides a three-month “buffer against forced liquidation”; stocks rebound after circuit breaker Putin agrees in principle to resume Russia-Ukraine-US trilateral talks in November! Abu Dhabi proposed as venue, as he calls for mediation between the US and Iran Russia allows retail investors to buy BTC, ETH, and USDT! Takes effect 11/17, Moscow Exchange targets a December launch This article, “Putin takes over Japan Tobacco (JT)’s Russian factories, shares plunge,” was first published by BlockTempo (the most influential blockchain news media).