• Economy

Survey shows 43% of Japanese firms have suspended operations in Russia

Forty-three percent of Japanese companies operating in Russia have partially or fully suspended their operations in the country, according to the results of a recent survey conducted by the Japan External Trade Organization (JETRO).

In the survey on the current status of business operations in Russia, 56% of the responding companies said they were operating as usual or considering their response to Russia’s invasion of Ukraine. The survey findings also indicated that many companies were struggling to deal with the situation.

JETRO conducted the survey on 211 companies from March 24 to 28, with 97 firms responding. The results were released on March 31.

The Yomiuri Shimbun

None of the respondents said they had withdrawn or had decided to withdraw from Russia in the immediate future. Regarding reasons for not withdrawing, the companies said they could not make decisions at present, and that making a decision was difficult, as Moscow could confiscate or nationalize their businesses. Some firms saw “market potential” in the country.

On business prospects for the next six months to a year, 38% said they would downscale their operations in Russia — more than double the figure of 17% in a survey conducted late February — while 29% said they did not know. Twenty-five percent of the companies said they intended to maintain the status quo, and 6% were planning to withdraw.