In Russia, more than 20 percent of Japanese companies have suspended operations

More than 20 percent of Japanese companies have withdrawn or suspended their operations from Russia in the past six months, according to a survey reported by the Japanese NHK station. Companies “find it increasingly difficult to sit back and watch the situation unfold.” The Japanese authorities strongly condemned Russia’s aggression against Ukraine.

The survey was conducted in late August by the Japanese Foreign Trade Organization (JETRO), which asked 202 companies, 107 of which responded. 4.7 percent of them said they had already withdrawn from Russia or are planning to do so, and 17.8 percent have stopped operating there entirely.

Reasons: logistical disruptions and reputational risk

Taken together, this represents a significant increase compared to a similar survey at the end of March, when only 6.2 percent. of companies declared to withdraw from Russia or to suspend their activities there. Logistical disruptions and reputational risks were cited among the main reasons for leaving the Russian market. However, 31.8 percent of the surveyed companies admitted that they had only partially suspended their operations in Russia, and 45.8 percent that they had been operating there unchanged, emphasizes the NHK. According to this station, many companies apparently find it difficult to pull back, given the investments made there.

“Strongly condemned Russia’s aggression against Ukraine”

According to JETRO, the decision to withdraw from Russia is likely to be made by other Japanese companies as it is ongoing war in Ukraine it makes it “increasingly difficult for companies to sit back and watch the situation unfold,” NHK reported. Authorities Japan strongly condemned Russia’s aggression against Ukraine and joined many of the Western sanctions imposed on Moscow, including the asset freeze of large Russian banks, the president Vladimir Putin and people around him. They also introduced a ban on the export of advanced technologies to Russia

Main photo source: Shutterstock

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