Up in smoke? Ukraine’s bid to shame Japan Tobacco for Russia tax fails to ignite

Japan Tobacco’s decision to stay in Russia highlights a stark contrast in Japanese public opinion compared to other nations

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People smoke cigarettes at a smoking area in Tokyo. Photo: AFP

Published: 12:00pm, 2 Feb 2025Updated: 1:51pm, 2 Feb 2025

Japan Tobacco, one of the world’s largest cigarette makers, has announced it has no intention of exiting the lucrative Russian market – a decision experts attribute to the lack of public outcry in Japan regarding the company’s operations in a country heavily sanctioned for its invasion of Ukraine.

The former state tobacco monopoly, which remains 33 per cent government-owned, continues to produce and sell cigarettes in Russia, contributing millions in taxes to Moscow, according to Ukrainian government data.

Yet despite these ties, the company faces minimal criticism in Japanese media, with the public appearing to make few links between the implications of its business activities in relation to the conflict.

“Russia was a big market for Japan Tobacco before the war and while Ukraine has been publicising lists of foreign companies that continue to operate there since the invasion, they are showing no signs of leaving,” said James Brown, a professor of international relations at the Tokyo campus of Temple University who specialises in Russian affairs.

The refusal to withdraw “reveals a big difference in attitudes” between Japanese and other foreign firms, Brown told This Week in Asia.

Cigarettes on sale in Moscow. A Ukrainian government report revealed that Japan Tobacco contributed US$182.3 million in taxes to the Russian government in 2023. Photo: Shutterstock

International companies that did not quickly exit the Russian market – including Heineken, banking firm Citigroup and the Kraft-Heinz food giant – were hit with bad press, and have since pulled out due to the associated damage to their brands and businesses.