In a bid to tap into business and partnership opportunities in emerging economies, Japanese business leaders are set to accompany Prime Minister Shinzo Abe as he visits Russia and the Middle East a month from now. Business lobbies and financing institutions are helping Japanese industries acquire cheaper overseas energy resources possibly in exchange for Japanese technologies, know-how, and infrastructure that will help developing countries build roads, bridges and atomic power plants.
Prime Minister Abe is planning to go to Moscow in late April, where he is expected to strengthen the renewed economic development cooperation with President Vladimir Putin. Motoyuki Oka, senior advisor at the Sumitomo Corp. trading house, will join the premier, together with officials of the Japan Bank for International Cooperation. The latter is a state-owned financing institution, whose officials will be looking to discuss financial measures supporting Japanese companies and partners launching business in Russia. Abe’s trip will then shift to Turkey, Saudi Arabia, and the United Arab Emirates in May. Hiromasa Yonekura, head of powerful business lobby Keidanren, will join Abe in the Middle East leg of the trip between May 1 and 3, along with Fumiaki Watari, senior executive advisor at energy resources and materials group JX Holdings Inc.
The energy industry in Japan is in a critical juncture at the moment, where it has burned fossil fuel to fill up the power generation gap that was left when the country mothballed most of Japan’s nuclear power plants – this after the nuclear disaster at the disaster-stricken Fukushima Daiichi facility. The spending towards imports of fuel, particularly liquified natural gas, for energy have put a lot of pressure on the bottom line of power companies and hugely impacting Japan’s trade situation. The trip to the Middle East is a leap towards possibly alleviating this difficulty by getting low-cost fuel deals from the one of the world’s most oil-rich regions.
Comments Off on JDP Startup Corner: Pros & Cons of Working with a Partner in Japan