With the abolition of the trade status, Russia will lose out on benefits such as low tariffs and fewer trade barriers. This allowed Tokyo to impose higher tariffs on Russian goods. Following the parliamentary decision, the government is preparing to issue a regulation stating that all imports from Russia will be subject to higher import duties by the end of March 2023. Imports of oil, liquefied natural gas and palladium are not affected by the measure, as no duties are imposed. on them even before Russia got the clause.

Japan has become more involved in international efforts against Russia over concerns about the impact the invasion would have on developments in East Asia, where China’s military is increasingly gaining power. Japan has also frozen the assets of hundreds of Russian people and groups, banned new investment and trade, including exports of goods that could be used for military purposes. He also announced plans to stop imports of Russian coal.

Japan has also faced retaliation from Russia. Moscow recently announced it was suspending talks on a peace treaty with Tokyo, which includes negotiations on the Russian-controlled islands, which the Soviet Union seized from Japan at the end of World War II.

Japan’s trade with Russia is relatively small, but has grown rapidly in recent years. In the fiscal year ending March, exports grew by nearly 40 percent and imports by nearly 70 percent. According to the Ministry of Finance, the tariff increase will affect about ten percent of imports from Russia, which in 2021 will be 1.55 trillion yen (CZK 272.7 billion).

Parliament also approved amendments to foreign exchange and trade laws to prevent cryptocurrencies from being used to circumvent economic sanctions against Russia, Kyodo said.