Like practically every country, the war in Ukraine has affected the economy and politics of Japan.  However, before exploring the specifics of these effects, it is important to note Japan’s history with Russia. Since the 19th century, Russia and Japan have had disagreements about the Northern Territories – 4 northern islands of Habomai, Shikotan, Kunashiri and Etorofu. Although Japan was the first to discover these islands, establishing control, the 1855 Treaty of Commerce concluded an amicable alliance between Russia and Japan within these territories. However, during the end of WWII, Soviet forces expelled all Japanese residents from the Northern Islands. As time has gone on, negotiations have continued between the two countries both have agreed to friendly terms once again. However, Russia’s attack on Ukraine has made Japan very cautious about how to proceed, fearing Russian forces will once again attempt to regain control of the islands. The war in Ukraine is a clear violation of their previous bilateral relationship, causing Japan to stand with fellow G7 members in publicly  denouncing the aggressive actions of the Russian government and implementing sanctions.

The implementation of Russian sanctions has also had a significant effect on the Japanese economy. The ban on Russian lumber exports has affected construction work in Japan, as many companies are struggling to secure supplies inducing a “wood shock”. Subsequently, the cost of wood construction has increased as access is increasingly limited.  Furthermore, other sectors, such as agriculture, have also experienced rises in prices.  Many Japanese companies have also been forced to change their manufacturing processes to compensate for supply chain vulnerabilities. The overall harmful effect of the Ukraine war on the Japanese has led to a sharp fall in the Japanese Yen, which subsequently minimizes the value of Japanese labor. This could have serious economic and security consequences for Japan as it hits to the collapse of a system of the international division of labor that has benefitted the Japanese economy for years.

In conclusion, despite being geographically disconnected from Europe, the Russia-Ukraine war has had a tremendous effect on Japanese politics and economy.

Sources:

Japanese Perspectives on the Ukraine Wawr by Katsumi Ishizuka and Ashild Kolas

Ukraine War: The Impact on Japan-Russia Relations by Mercy Kuo

Half of Japanese Companies Report Impact on Supply Chain from Ukraine War

Northern Territories Issue by the Ministry of Foreign Affairs of Japan

By Danna Rubesh