More Japanese firms withdrawing from Russia

A survey shows that more than 20 percent of Japanese companies doing business in Russia have either withdrawn or suspended activity in the country.

The Japan External Trade Organization surveyed 202 companies in late August, more than six months after Russia launched its invasion of Ukraine. One hundred and seven firms responded.

Four-point-seven percent of them said that they had left, or have decided to leave Russia.

Seventeen-point-eight percent said that they had totally suspended their operations.

The total is 22.5 percent, a sharp increase from 6.2 percent in a similar survey conducted in late March.
The main reasons for withdrawing were disruptions or delays in logistics and reputational risks.

But 31.8 percent of the respondents said they had only partially suspended their operations, while 45.8 percent said their business in Russia had not changed.

Many companies apparently are finding it difficult to withdraw, considering how much they have already invested.

JETRO says more Japanese companies will likely decide to withdraw from Russia, as the conflict drags on, and it becomes increasingly difficult for businesses to sit idly by and watch as the situation develops.