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.