Japan’s largest shipping company, Nippon Yusen, better known as NYK Line, is weighing a partial withdrawal from Russia’s road freight transport within months, the Japanese edition of Nikkei reports. The strategic rethink comes as the company weighs the consequences of sanctions and growing boycotts tied to Russia’s actions in Ukraine, coupled with a sharp drop in demand for delivery services. The move is part of a broader reassessment by Japanese exporters that have faced a tougher operating environment since the conflict began and Western sanctions intensified.
Today, Russia continues to see transport services operate, but on a materially reduced scale. Key obstacles hinder expansion: the suspension of many vehicle production lines in Russia and persistent frictions with money transfers that complicate cross border payments. These financial and manufacturing headwinds make it increasingly difficult for NYK Line to sustain a large logistics footprint in the country. The company’s overland operations in Russia are carried out through its subsidiary NYK Auto Logistics (Rus). This unit previously served as the logistics arm for Russia’s largest car retailer, Rolf, until NYK Line completed full ownership in 2020. Since then, NYK Auto Logistics (Rus) has managed the movement of new vehicles across Russia using a mix of trailers, rail transport, and related freight handling activities, acting as a critical link in the supply chain for automotive brands that rely on Russian distribution networks.
In fiscal year 2021, NYK Line handled roughly 180,000 vehicle movements within Russia, a figure that represented about 10 percent of the country’s new car sales for that period. As the company contemplates withdrawing, it is exploring the possibility of divesting its subsidiary to local firms, a move that could help preserve value while limiting domestic market disruption. The strategic recalibration comes at a time when automakers based in Japan face a sweeping pause in operations in Russia, limiting any potential impact from NYK Line’s partial exit on their regional manufacturing and export plans. The anticipated downsizing is thus seen as a measured response to the evolving sanctions landscape and shifts in demand patterns, rather than a forced disruption of broader supply chains for Japanese auto brands. The Nikkei Japan edition notes that the withdrawal is unlikely to cause major upheaval for automakers, who had already scaled back activity in response to the special operation and related sanctions, focusing more on reconfiguring their international logistics and production footprints to align with the new geopolitical and economic realities.