Japanese Companies' 'De-Russia' Rush... 37 Firms Join

[Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Since Russia's invasion of Ukraine on the 24th of last month, Japanese companies have been joining the 'de-Russia' movement one after another.

According to the Nihon Keizai Shimbun and Sankei Shimbun on the 24th, 37 Japanese companies are suspending or reducing their business operations in Russia.

Japan Tobacco Inc. (JT), the largest tobacco producer in Russia operating four local factories, hinted at suspending its Russian business at the shareholders' meeting held the day before.

Fast Retailing, which operates the fashion brand Uniqlo, temporarily suspended its Russian business on the 10th.

Japanese companies are also changing their raw material sourcing locations from Russia to other regions or modifying their supply chains.

Tire manufacturer Bridgestone has been securing tire materials from Russia and other countries to supply its European factories but is currently reviewing its supply chain.

Construction machinery manufacturer Hitachi Kenki used to ship products supplied to the Commonwealth of Independent States (CIS) via Russia, but due to delays in parts procurement at Russian factories and logistical disruptions, it has decided to consider changing the route.

Japanese airlines such as All Nippon Airways (ANA) and Japan Airlines (JAL) are choosing detour routes that avoid Russian airspace on European routes, considering the possibility that they may not be able to procure parts in case of emergency landings within Russian territory.

According to market research firm Teikoku Databank, as of the 15th, about 20% of the 168 major Japanese companies operating in Russia have decided to suspend or halt their business.

The Nihon Keizai Shimbun reported, "As prolonged sanctions against Russia are expected, these companies are seeking global strategies excluding Russia."

This content was produced with the assistance of AI translation services.