Japan bans new investment in Russia, freezes assets of two banks

Along with difficulties in payment, Japanese businesses operating in Russia also face many other difficulties such as disruption of logistics operations or additional investment capital.

On May 12, Japan imposed additional sanctions on Russia as the military conflict in Ukraine shows no signs of ending.

Specifically, organizations/individuals wishing to buy 10% or more of shares in a Russian company or provide new loans to Russian businesses with a term of one year or more must seek government permission.

According to NHK, the regulation is equivalent to a ban on these activities. The Japanese government also prohibits organizations/individuals from making payments to Russian businesses and other organizations.

In addition, the Japanese government also decided to freeze the assets of Sberbank - Russia's largest financial institution, and Alfa Bank - Russia's largest private bank. This will force Japanese businesses to look for new payment methods if they want to continue doing business in Russia.

Along with payment difficulties, Japanese businesses operating in Russia also face many other difficulties such as disruptions in logistics operations or additional investment capital.

According to the Japanese Ministry of Finance, in 2021, Japanese businesses invested 61.2 billion yen (about 470 million USD) in Russia.

According to Tin Tuc newspaper