Honda announced on Wednesday that it had halted exports of automobiles and motorcycles to Russia as countries tightened sanctions against Russia in response to its invasion of Ukraine.
Exports to Russia had already been halted as of Wednesday, though no date was given for the halt. Mazda would also halt car part exports to its plant in the country.
The suspension was due to supply chain and financial concerns, according to Honda.
The business environment in the target country is fast deteriorating as more corporations announce their commitment to economic sanctions imposed by the US, Europe, and Japan against Russia.
The country’s currency is rapidly depreciating, and its logistical network is becoming increasingly fragmented.
Honda (HMC ) reported that total sales in the United States fell 20.6 percent year over year to 84,394 units in February but were down 20.3 percent year to far.
Several supply challenges, as well as Winter Storm Landon, stymie efforts on expanding vehicle inventory. As the Ukraine crisis grinds on, European banks traded lower on Wednesday, following two days of severe losses.
As a result of the sanctions, Boeing (BA) said that parts, maintenance, and technical assistance for Russian airlines will be suspended.
The US said that it would follow the European Union in prohibiting Russian flights from entering its airspace.
On Wednesday, Asian markets were under further pressure, and oil prices soared beyond $110 per barrel as investors were concerned about the implications of tougher sanctions.
Rivian Automotive Inc, a startup in the United States, has raised the prices of its electric vehicles by around 20%.
The Nikkei 225 index in Japan lost 1.68 percent. The price of West Texas Intermediate petroleum in the United States increased by about 6% to $109.30. The dollar surged 1.88 percent to 107.01% against the rouble in the currency market after hitting a new high earlier.
The FTSE 100 index increased by 0.8 percent, while the UK midcap index increased by 0.7 percent.
Bitcoin was down 0.23 percent at $44,341.68 after soaring over 15.5 percent.
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