Japan Tobacco Inc. (JT)(TSE:2914) has announced that effective immediately, its subsidiary, JTI, will suspend all new investments and marketing activities as well as the planned launch of its latest Heated Tobacco product Ploom X in Russia. The challenges of operating in Russia at this time are unprecedented and JTI needs some time to assess the long-term implications of the situation which all large international investors in Russia are currently facing. Unless the operating environment and geopolitical situation improve significantly, JTI cannot exclude the possibility of a suspension of its manufacturing operations in the country.

Russia is one of JTI’s largest markets. JTI has 4 factories and employs close to 4,000 people in the country. JTI remains committed to its workforce and all employees will be retained for the foreseeable future.

Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said:
“We have all been shocked to see the human tragedy unfolding in front of us. In Ukraine, where we employ about 1,000 people, the company has suspended its operations, prioritizing the safety of our employees and their families. The JT Group is extending all possible support to affected people and has already committed significant resources towards humanitarian aid and continues to support many employee-led initiatives both locally and in the surrounding countries. I sincerely hope peace will return soon.”