Japanese Companies Suspend or Downsize Operations in RussiaEconomy Politics Work
Amid Russia’s continuing invasion of Ukraine, in late March 2022 the Japan External Trade Organization (JETRO) conducted a survey of 211 Japanese companies operating in Russia, receiving 97 responses.
A total of 81% had withdrawn some or all of their Japanese employees, with 72% of these returning to Japan, 14% relocating to Europe, and 14% to the Middle East or elsewhere in Asia.
Some 43% of firms had suspended part or all of their operations in Russia. Looking ahead to the next six months to one year, 38% of companies predicted that their operations would shrink and 6% that they would withdraw from the country, while 29% said that they did not know.
One company representative commented, “The continuation of the present situation into the longer term and the possibility of tighter economic scrutiny make it difficult to decide on the timing for maintaining or reducing operations.” Another said that “We’re stuck between the risk of having our assets taken and nationalized if we withdraw, and the reputational risk of keeping operations going.”
(Originally published in Japanese. Banner photo © Pixta.)