Survey: Japanese Firms Slow Down Shift Away From Russia
A survey by a private research firm indicates that Japanese firms are slowing down their shift away from Russia, six months after the country's invasion of Ukraine began.
Teikoku Databank says, as of Sunday, 44 percent of 168 major Japanese companies have decided to suspend their business in Russia or pull out from the market.
The shift away from Russia, began by Western businesses, has been followed by Japanese firms.
But the survey shows that since July no Japanese companies newly decided to suspend their business or pull out.
The research firm says the shift away from Russia by businesses including Western companies is slowing down. It says this tendency may be prompted by a growing view that the risk of damaging their reputation by operating in Russia is not as serious as had been thought.
But the research firm also says some companies are facing difficult decisions whether to withdraw from Russia to avoid more damage to their business, as no end to the invasion is in sight any time soon.
Chairman and CEO Sasaki Nobuhiko of the Japan External Trade Organization, or JETRO, said on Monday that Japanese firms are at a critical turning point, forced to make urgent decisions, with no bright outlook for the future.
Exports and imports have been notably affected by the Ukrainian situation.
Exports of vehicles to Russia were down to about 16,000 in the half year through the end of June. That's down 60 percent from the previous year.
Imports of Russian crude oil have been on the decline since May, following Japanese government policy.
Imports of natural gas, however, have not been affected much so far, as they are on long-term contracts.
This month, the Russian government has established a new company to take over the Sakhalin-2 oil and natural gas project in the country's Far East.
Moscow urges the two Japanese investors, Mitsui & Co. and Mitsubishi Corporation, to notify it by September 4 whether the trading firms wish to hold onto their stakes.