Is Russia’s seizure of Japan Tobacco assets the last straw for Tokyo amid frosty ties?

Tokyo has been put on alert after Russia seized control of key assets belonging to Japanese company Japan Tobacco International (JTI). The Japanese government responded by lodging a formal complaint with Russia and demanding the immediate reversal of a decree signed by President Vladimir Putin. The decree transferred JTI's assets to Russian control, sparking outrage among analysts and officials alike.

James Brown, a professor of international relations at Temple University’s Tokyo campus, explained that JTI has been a loyal partner to Russia despite the ongoing Ukrainian conflict, and has even faced blacklisting by Ukraine. This move by Moscow is considered a calculated decision, as JTI holds over one-third of the company's stock. The Russian president's visit to disputed islands claimed by Tokyo further escalated tensions between the two nations.

Analysts warn that Tokyo may be forced to adopt a more resolute stance towards Russia. Brown urged Prime Minister Sanae Takaichi to withdraw Japan's ambassador to Moscow, increase support for Ukraine, and take strong measures against intelligence officers. Tadashi Anno, a professor of politics at Tokyo’s Sophia University, argued that Japan has few meaningful ways to counter Russian pressure due to its dependence on Russian oil and gas.

Some Japanese people are critical of JTI's continued presence in Russia, but overall, there is little sympathy for the company. However, Brown believes that the seizure of JTI assets is a strategic miscalculation that will ultimately hurt Russia by discouraging other foreign firms from staying in the country.