Japan Tobacco Inc. (TSE:2914) announced on April 28, 2022, it was considering selling its Russian operations after suspending investment and marketing activities in the country last month following Moscow's invasion of Ukraine. The announcement by the company 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 the company 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 the group's revenue and 15% of adjusted operating profit. The company and American competitor Philip Morris International Inc. (NYSE:PM) each hold about 20% stakes in the holding company of Russian tobacco distributor TC Megapolis JSC.