The war in Ukraine is casting a veil over Japanese and affiliated companies doing business in Russia, according to two new surveys released March 31.
A survey sent to 211 Japanese affiliated companies based in Russia by the Japan External Trade Organization (JETRO) found that 99% of respondents said they “are negatively affected or should be negatively affected” by the invasion of Ukraine by Russia.
A separate survey released by the Japan Chamber of Commerce and Industry (JCCI) also showed a similar trend.
“It will take a long time for companies to assess the Russian market positively,” said Manabu Shimoyashiro, an official at JETRO. “Even if a ceasefire agreement is reached, businesses will not return to normal anytime soon.”
JETRO’s survey was conducted March 24-28.
When companies were asked about the negative effects on business due to the war started by Russia, 96 of the 97 companies that responded to the survey, or 99%, said that they “had already been negatively affected or “should”.
Companies were also asked to provide one or more responses on specific effects. Eighty percent said they were hit with “disruptions or sluggish logistics”, which was the most chosen option.
This was followed by a “falling ruble” to 73% and “difficulty in payment transactions” to 54%.
Additionally, 55% said their monthly sales “have dropped” since the Russian military invaded Ukraine on Feb. 24, while 9% said their sales have been wiped out entirely.
They said they do not receive their final commercial products from Japan due to logistical disruptions or tighter export controls.
Fifty-six percent said their current business operations were “normal” or “under review”, while 43% said their operations were “partially or completely suspended”. But none of the companies said they “have already gone out of business” there.
According to JCCI’s survey of its corporate members across Japan, 92.6% said they “are affected now” or “are not affected now, but are concerned about the prospect” of the invasion that will hit them. hit.
Many companies have expressed specific concerns about rising energy prices or rising costs.