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INTERNATIONAL > Ukraine Crisis

Few Japanese firms announce pullout from Russia

  • April 10, 2022
  • , Nikkei , p. 3
  • JMH Translation

Auto parts maker T.RAD Co. is among the small number of Japanese firms that have announced their withdrawal from Russia. Many other Japanese firms chose to suspend operations in Russia or to continue business there to handle outstanding orders.


Ripples from local supply chain disruptions and aggravated business conditions caused by the economic sanctions are affecting Japanese firms that have announced the suspension of business in Russia. Hitachi Construction Machinery initially planned to suspend operations around mid-April soon after the completion of production for orders that it has already received. But the business suspension schedule will likely be pushed back to June due to delayed shipments of core parts from Japan.


Wariness is growing within the business community as the situation may linger for a longer time. In a Japan External Trade Organization (JETRO) survey of Japanese firms operating in Russia (conducted through March 28 with responses from 97 firms), the largest number of respondents, at 38%, said that they may “downsize” operations in the country over the next six months to one year. This percentage more than doubled from 17% in the previous survey (conducted through Feb. 25). And 6% of them responded they may “withdraw.” In the previous survey, none of them said so.

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