Over half of the companies operating in the country reportedly fear being unable to return
© Getty Images / Sarah Sosiak / EyeEm
Japanese companies are no in a hurry to quit the Russian market, amid fears of being unable to return and having to find new suppliers, the Japan Times reported this week, citing a survey from the statistics center Teikoku Databank.
According to the report, within the past month no Japanese companies have announced a suspension or cessation of operations in Russia.
Since Russia became subject to numerous sanctions due to its military operation in Ukraine, 74, or about 40%, of the 168 listed Japanese companies working in Russia announced intentions to leave the country.
Of these, however, most said they would only halt some form of operation, while a mere five companies said they would withdraw from the Russian market completely.
According to the survey, Japanese companies attributed their reluctance to withdraw from Russia to fears of losing their niche in what they consider an important emerging market and potential difficulties in finding alternative suppliers.
Earlier this year, reports emerged that the Japanese government had urged the conglomerates Mitsui and Mitsubishi to retain their stakes in the Russian liquefied natural gas (LNG) project Sakhalin-2, which now operates under a new Russian operator, in order to ensure continued LNG flows. Also, a number of Japan’s major automakers, including Toyota, have suspended their activities in Russia over the past several months but have not yet closed their businesses in the country.
Western sanctions against Moscow have forced many international companies to quit the Russian market. However, according to a Yale University survey, just 5% of Japanese companies that had operations in Russia have left, which is tied with Italy for the lowest shares in the G7. This contrasts with 46% for the UK, 33% for Canada, and 27% for the US.
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