More Japanese-listed companies closing operations in Russia: survey

More than 30% of listed Japanese companies operating in Russia have decided to stop doing so as Moscow continues its war in Ukraine, a survey by a credit research firm recently revealed.

In the Teikoku Databank Ltd. survey, 60, or 36%, of the 168 companies doing business in Russia said they planned to stop doing business in the country, up from 37 in the previous survey in March.

Some companies continued to work in Russia due, among other things, to the need to fill back orders.

As of April 11, a total of 31 companies said they had decided to “suspend trade”, including postponing shipments, an increase of nine from last month’s survey.

The number of companies planning to halt manufacturing, including factory work, rose from four to 11 companies. Nine said they would suspend business operations, such as store closures, up from five.

In March, no company announced plans to pull out of Russia altogether, but that number rose to three in the latest survey.

Many companies cited disruptions in logistics and supply chains to suspend operations in Russia, with the protracted crisis in Ukraine deepening business mistrust.

However, others noted that they would continue to operate in the country, taking into account that their products would not be impacted by the sanctions put in place by Western countries.

“It’s possible that more companies will choose to pull out of Russia” amid uncertainty about the business environment returning to normal, a Teikoku Databank spokesperson said.

Related coverage:

Japan’s lower house proposes bills to strip Russia of privileged trading status

More than 20% of large Japanese companies stop Russian companies: survey

Japanese non-life insurers suspend contracts of companies operating in Russia