Half of Japanese Companies Have Suspended Russia Operations or Withdrawn CompletelyEconomy Politics
A survey conducted by Teikoku Databank has shown that 79 of the 168 listed Japanese companies with operations in Russia as of February 2022 have either suspended, downsized, or ended those operations as of February 19, 2023.
In fall 2022, a string of Japanese companies announced they would cease production in Russia, including Toyota, Nissan, and Mazda, and to date 27 companies have effectively withdrawn or announced plans to withdraw from the country. As of August 2022, only 8 companies had left the Russian market, but over the subsequent six months, approximately 20 more companies decided to leave.
In many cases, the companies cited difficulties in procuring parts and shrinking demand from local companies and markets due to Russia’s prolonged invasion of Ukraine.
Teikoku Databank researched the percentage of companies withdrawing from Russia on a country-by-country basis, based on data compiled by the Yale School of Management. The results show that among approximately 1,600 major corporations worldwide, 500, or roughly 30%, have either withdrawn or announced the withdrawal of their Russian operations.
Of these, the percentage of Japanese companies withdrawing from the Russian market was the second lowest among the Group of Seven. Japan ranked nineteenth among the roughly 30 countries worldwide that had at least 10 companies operating in Russia. More than 60% of companies from Norway and Finland have withdrawn from Russia, and more than 50% from Britain.
(Translated from Japanese. Banner photo © Pixta.)