Japanese companies are continuing to suspend business in Russia, as the country faces growing sanctions.

An expert says the move is pushing economic relations between Japan and Russia into a new ice age.

Saito Daisuke is the Moscow-based director of the Japanese Association for Trade with Russia and NIS.

He says the sanctions are not the only reason for the Japanese companies in Russia to put their business on hold.

Saito says the other factors are the halting of supplies of commodities due to logistics disruptions stemming from the sanctions, and a review on pricing following a drop in the Russian ruble.

The companies will be forced to make tough decisions on whether to continue or to withdraw.

Saito predicts the exodus among Japanese firms whose main business is in Russia will continue. They may even shrink in number by nearly 50 percent.

Another concern is Russian President Vladimir Putin's threat to seize the assets of departing foreign companies.

Saito believes Putin is trying to put a brake on the exodus in a bid to maintain local jobs and social stability.

He notes the possibility of the authorities stepping up pressure on those companies.

Saito says the officials may try to stall by imposing time-consuming but arbitrary procedures. Or they might try to block the firms from removing their production facilities from Russia.

Heavy fines may also be in the offing.

He says a pessimistic view holds that efforts have faltered over the past three decades to incorporate Russia into the global economy and develop economic ties between it and Japan.

A survey by Japan's Foreign Ministry shows that 421 Japanese companies were in Russia as of October 2020.