36% of Japanese companies in Russia are suspending operations

More Japanese companies operating in Russia are suspending business there, according to a survey, at 36% this month from 22% a month ago.

The report released Friday by Teikoku Databank, Ltd., a business research firm, said that the disruption in logistics has likely led to difficulty in continuing business as well as concerns about suffering a negative corporate reputation over conducting business in Russia, which has been invading Ukraine.

The survey looked at 168 listed companies that had operating bases in Russia in February and 60 of them expressed as of April 11 that they would either halt, limit or withdraw their business there. The number of companies that expressed the same as of March 15 was 37.

Of the 60 companies, 31 said they would halt transactions, including that related to shipping and taking orders of products. Another 11 companies said they would halt production at factories and other facilities, while nine companies responded they would close outlets or halt sales activities.

Whereas in the March survey no companies said they would withdraw from Russia, this time three companies said they would.

Round One Corp. which runs amusement complexes such as bowling alleys has announced its withdrawal from Russia.

“As international criticism of Russia is expected to be prolonged, moves to rethink business in Russia are highly likely to progress further,” a Teikoku Databank official said.