By TAKEHIRO TOMODA/ Staff Writer
April 1, 2022 at 18:28 JST
The logo for the Japan External Trade Organization (JETRO) (Takehiro Tomoda)
The war in Ukraine is casting a pall over Japanese and affiliated firms that do business in Russia, according to a pair of new surveys published on March 31.
A survey sent to 211 Japanese-affiliated companies based in Russia by the Japan External Trade Organization (JETRO) found that 99 percent of respondents said they “are negatively affected or are expected to be” by Russia’s invasion of Ukraine.
A separate survey released by the Japan Chamber of Commerce and Industry (JCCI) also showed a similar trend.
“It will take a considerable amount of time for businesses to evaluate the Russian market positively,” said Manabu Shimoyashiro, a JETRO official. “Even if a ceasefire agreement is reached, the businesses won’t soon return to normal.”
JETRO’s survey was conducted from March 24 to 28.
When the firms were asked about negative effects on business because of the war started by Russia, 96 of 97 firms that responded to the survey, or 99 percent, said that they “have already been affected negatively,” or “are expected to.”
The companies were also asked to give one or multiple answers about the specific effects. Eighty percent said they were hit with “logistics disruptions or stagnation,” which was the most-selected option.
That was followed by being impacted by a “decline in the ruble” at 73 percent and experiencing “difficulty in payment transactions” at 54 percent.
In addition, 55 percent said their monthly sales “have dropped” since the Russian military invaded Ukraine on Feb. 24, while 9 percent said their sales were wiped out entirely.
They said they are not receiving their final commercial products from Japan due to logistical disruptions or tougher export screenings.
Fifty-six percent said their current business operations are “normal” or “being reconsidered,” while 43 percent said their businesses are “halted partially or wholly.” But none of the companies said they “have already withdrawn” from business there.
According to the JCCI survey of its corporate members across Japan, 92.6 percent said they “are affected now” or “are not affected now, but are concerned about the prospect” of the invasion impacting them.
Many companies raised specific concerns about the hike in energy prices or their costs rising.
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