Hitachi suspends business operations in Russia

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Hitachi Ltd. announced on Thursday that it would suspend business operations in Russia, following other major Japanese companies, as Moscow’s invasion of Ukraine continues.

After a request from a Ukrainian deputy prime minister, Hitachi said in a statement that it was suspending all manufacturing activities in Russia for the time being and suspending exports to the country.

Ukrainian Deputy Prime Minister Mykhailo Fedorov said on Twitter earlier this week that he had urged the Japanese industrial conglomerate to stop supplying products and services to Russia.

Disclosure of a letter addressed to Hitachi Executive Chairman and CEO, Toshiaki Higashihara, he said: “We call on your company to end all relationship and cease doing business in the Russian Federation until the Russian aggression in Ukraine is completely halted and a just order is restored.

Hitachi said the Russian market represents only about 0.5% of its consolidated sales forecast for the fiscal year ending this month. It manufactures and sells construction machinery in the country.

Hitachi Construction Machinery Co., a subsidiary, had previously announced the suspension of heavy machinery exports to Russia.

Many Japanese companies halted their business activities in Russia after its February 24 invasion of Ukraine.

Last Friday, Toyota Motor Corp. suspended operations at its St. Petersburg plant, citing supply chain disruptions. Meanwhile, Nissan Motor Co. on Monday announced plans to temporarily halt production at its plant in the Russian city.

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