Japanese companies staying in Russia

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Only 2.4% of Japanese companies operating in the Russian Federation are said to have left the Russian market permanently since the start of the war between Russia and Ukraine.

Citing data from Teikoku Databaseonly four of the 168 companies left Russia to protest against the Kremlin’s full-scale invasion of neighboring Ukraine, which began on February 24.

This number represents the smallest number of companies among the “Group of Seven” powers (the United States, Japan, France, Canada, Italy, Germany and the United Kingdom), in terms of the liberation of the business climate in Russia.

Britain has the highest exodus rate among the G7 powers, 48%; and Italy has the second lowest rate (5%), according to the REGNUM agency.

Citing a report by the Kyodo agency, Japanese companies invoked a cautious approach, almost neutralpublic position with its companies operating in Russia.

The apparent goal: companies would re-engage with the Russian market all the way – presumably after the war was over.

Additionally, Kyodo reports that many Japanese companies did not have a predetermined action plan in case they had to leave Russia, which delayed or reduced exodus plans.

The four Japanese companies said to have left Russia: Toyota Motor Co., Nissan Motor Co.., Bridgestone tires and Uniqlo Clothing Stores.

Leaving a generally robust market like Russia ($1.7 trillion gross domestic product, ranked 11th in the world) sometimes has economic consequences.

Last March, more than 400 Western companies pledged to leave Russia, as a sign of solidarity with Ukraine.

However, the move would have left behind assets totaling “hundreds of billions of dollars”, in total, before the invasion of Russia.

And on Friday, the head of a stock market association told Reuters that sanctions against Russia had forced hundreds of thousands of private investors to switch brokerages to avoid having their investments frozen.

© 2022 Newsmax. All rights reserved.

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