business

77% of Japanese firms in Europe affected by Ukraine war

15 Comments

Some 77 percent of Japanese companies in Europe see their operations affected by Russia's invasion of Ukraine primarily through a rise in energy and food prices and disruptions in logistics, a survey showed.

Manufacturers feel the heftier impact, with 83.7 percent in the sector saying their business has suffered due to the war in Ukraine, according to the online survey of 1,445 companies conducted between Sept. 1 and 26 by the Japan External Trade Organization with valid responses from 799.

Among 605 companies that responded to a multiple choice question about the negative factors, 65.1 percent cited rising energy prices, 55.9 percent said higher prices of raw materials and resources such as plastic and rubber products, while 54.0 percent raised disruptions and bottlenecks in logistics.

"The survey demonstrates the severity of the impact of the Ukraine war on business operations," said Akiko Ueda, an official at JETRO.

"The fact that nearly 80 percent of the companies said they feel negatives from the Ukraine war underlines the situation where they cannot escape from suffering damages even if they expedite efforts such as passing on prices to customers," Ueda said, adding the resolution to the conflict is "crucial" for improving business environment.

The Ukraine crisis, triggered by Moscow's invasion in February, has caused grain exports from the East European country to stagger, leading to hikes in the price of food. Companies in the food industry as well as the farm and fisheries processing sector were especially affected, JETRO said.

The auto industry also suffered as it was forced to scale back or halt operations in Russia and saw rises in prices of energy, raw materials and parts.

Of 501 companies giving answers to a question about countermeasures, 50.5 percent said they have passed higher costs on to customers. Some 27.5 percent have diversified their supply base, while 25.1 percent have sought new customers. In the manufacturing sector, 29.4 percent said they have increased their inventory.

Among other concerns over the Ukraine crisis, companies cited the uncertain outlook for when the hostilities will end and when business in Russia can be resumed, the survey said.

© KYODO

©2022 GPlusMedia Inc.

15 Comments
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Not a lot. Actually, trade with Russia for Japan is booming:

https://www.nytimes.com/interactive/2022/10/30/business/economy/russia-trade-ukraine-war.html

0 ( +5 / -5 )

what weird way to phrase it, like Japan is a victim

-1 ( +3 / -4 )

How many are just using this situation to crank prices up? Probably most

-3 ( +2 / -5 )

The impact on businesses in Europe is because the EU decided to sanction Russia. Up until those sanctions, Russia never said it wouldn’t sell gas and oil to EU members. So no, it is not because of the war per se. The impact is because the EU politicians decided to ignore the needs of their citizens for the sake of some imaginary ideals.

4 ( +7 / -3 )

@JaneM2, Well said!

Russia continue to offer cheap gas on the condition they put an end to the sanctions. Germans were increasingly protesting their government to end the sanctions. Then the pipelines "magically" blew up...

1 ( +4 / -3 )

Today ruzzia bombed another maternity hospital and killed two-day-old baby. Half the country is without power or water.

Ideals are not ‘imaginary’.

-2 ( +2 / -4 )

How many affected by the sanctions?

0 ( +1 / -1 )

Europe remove the stupid sanctions on Russia and the matter is solved..

2 ( +4 / -2 )

How many affected by the sanctions?

Affected by sanctions = not able to buy 'real' McDonalds or a new car with airbags and power steering.

In comparison with being affected by having no water or power in the middle of winter, being bombed out of your home, and your family being killed by drones and missiles? You really want to compare those?

Europe remove the stupid sanctions on Russia and the matter is solved.

Putin remove the stupid special military operation from Ukraine and the matter can start to be solved.

It will take a while.

3 ( +4 / -1 )

Putin remove the stupid special military operation from Ukraine and the matter can start to be solved.

Putin has tried to solve things for years, but Ukraine ignored previous agreements and Putin's legitimate concerns. Why would Putin stop and negotiate with someone who does not want to negotiate or ignores the agreements from previous negotiations.

-3 ( +0 / -3 )

Cleo

Affected by sanctions = not able to buy 'real' McDonalds or a new car with airbags and power steering.

If that is the effect sanctions are having, what's the point of sanctions in the first place?

That would mean the average European citizen is harder hit than the average Russian. I thought that the whole point of economic sanctios is to make the other side suffer disporportionate economic pain.

-1 ( +2 / -3 )

The sanctions are forcing Russia to borrow money.

-1 ( +1 / -2 )

Wallace

The sanctions are forcing Russia to borrow money.

You are aware that Russia actually has an account surplus of 167 Billion?

https://www.bloomberg.com/news/articles/2022-08-09/russia-more-than-triples-current-account-surplus-to-167-billion

1 ( +2 / -1 )

Bloomberg is a subscription link?

The daily cost of the Russian war is $10-$20 billion. Already more than 200 days of the war.

0 ( +1 / -1 )

Wallace

I don’t think you understand what the phrase account surplus means.

1 ( +1 / -0 )

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