Companies across the globe have been fleeing Russia as the country faces increasing sanctions due to its ongoing invasion of Ukraine, raising concerns over the ramifications the crisis may have on the global economy.
Major Japanese manufacturers have added their names to the ever growing list of businesses halting operations in Russia, but economists note that the direct negative impact on Japanese firms is likely to be limited even though resource supply chain woes could cause long-lasting headaches.
Photo taken March 1, 2022, shows the flag of Toyota Motor Corp. in Toyota in Aichi Prefecture, central Japan. (Kyodo)
“The ratio of business that Japanese firms do in Russia (to their whole overseas operations) remains quite small,” said Manabu Shimoyashiro, senior director of the Overseas Research Department in the Japan External Trade Organization. Since Russia is “not a major market” for them, the firms’…