TOKYO, April 28 Reuters Japan Tobacco JT said on Thursday it was considering selling its Russian operations after suspending investment and marketing activities in the country last month following Moscow39;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.
One option JT is considering is to transfer its Russian business to a third party, allowing operations and employment there to go on, Deputy Chief Executive Koji Shimayoshi told analysts.
A company spokesperson separately said he could not comment on potential buyers for the business. In the current fiscal year, the company estimated Russia would contribute about 8 of JT39;s group revenue and 15 of adjusted operating profit.
Japan39;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.
JT and American competitor Philip Morris International each hold about 20 stakes in the holding company of Russian tobacco distributor TC Megapolis JSC. Megapolis was, until recently, run by a Russian billionaire sanctioned by the European Union for…