Since Russia’s invasion of Ukraine on the 24th of last month, Japanese companies have joinend Uniqlo to withdraw from Russia one after another.
According to the Nikkei Asia, 37 Japanese companies are either shutting down or reducing their Russian operations.
Japan Tobacco Industry (JT), the largest tobacco producer in Russia and operating four local factories, hinted at the suspension of its Russian business at a general shareholders’ meeting the previous day before.
Fast-tailing, which operates fashion brand Uniqlo, temporarily suspended its Russian business on the 10th.
Japanese companies are also changing their suppliers of raw materials outside of Russia and revising their supply chains.
Tire manufacturer Bridgestone has secured tire materials in Russia and supplied them to European factories, but is currently reviewing its supply chain.
Construction machinery manufacturer Hitachi shipped products supplied to the Independent Federation of Nations (CIS) via Russia, but decided to consider changing the route due to stagnant parts procurement and logistics confusion at the Russian plant.
Japanese airlines such as All Nippon Airways (ANA) and Japan Airlines (JAL) are taking a detour route to prevent European routes from passing over Russia in consideration of the inability to procure parts during an emergency landing in Russia.
According to market research firm Daikoku Data Bank, about 20% of 168 major Japanese companies that entered Russia as of the 15th decided to suspend or suspend their business.
The Nihon Keizai Shimbun said, “As sanctions against Russia are expected to be prolonged, these companies are seeking global strategies except for Russia.”
