Many Japanese companies do business in Russia. But due to the aggression and attacks in Ukraine, the companies have decided to close their business in Russia. According to a survey, 20 percent of Japanese companies have decided to close their businesses in Russia. The companies took this decision after announcing the Western sanctions on the country. The article is about 20% of Japanese Companies Halted Operations In Russia.
Teikoku Databank Corporate surveyed 18 companies doing business in Russia. There, 36 organizations said they were shutting down operations in Russia. The reasons for the war are the severity of the war and the problems with infrastructure and supply chains.
Out of these 36 companies, 26 are car manufacturing or heavy industry equipment manufacturers. However, no organization has yet planned to withdraw from the Russian market. On the contrary, several large companies, including Toyota Motor Corporation and Fast Retailing Corporation, have closed their business in the Russian market for the time being. Since the future of the war is still uncertain, Japanese institutions are still suffering from indecision.
A large part of the world has taken a stand against Russia’s aggression in Ukraine. Doing business in Russia in this situation means supporting their decision. This will tarnish the reputation of the institutions. On the other hand, the Russian government has threatened to nationalize the relevant organizations’ assets if the business is withdrawn from their country. As a result, he has to keep that in mind. Therefore, the companies are suspending their business activities in Russia, keeping their plans to expand their business in the future.
Of the 36 companies, 22 have suspended all transactions with Russia. Even the goods are not being transported. In addition, seven companies have stopped production. Russia has decided to suspend its activities by closing local shops in Russia.
Toyota announced in March that it had suspended operations at its St. Petersburg plant. The supply chain crisis was cited as the reason. In addition, Russian workers were asked to work from home, but 50 showrooms in the country were temporarily closed.
In a video message, Ukrainian President Volodymyr Zelensky called on Japanese lawmakers to suspend trade with Russia in March. According to the Yale School of Management, so far, 800 companies around the world have officially announced that they will withdraw from Russia or suspend operations.
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