By Tetsushi Kajimoto

TOKYO (Reuters). Nearly 70% Japanese businesses expect earnings to be affected by the Ukraine crisis. According to a Reuters poll, the majority of respondents cited an increase in oil prices.

According to the latest Reuters Corporate Survey, there is more trouble ahead for Japanese companies located in resource-poor areas. A weakening yen further increases the price of commodities while putting more pressure on families.

The majority of the 69% of companies polled said they expect the crisis will impact their earnings. Only 9% stated they would see a major effect.

According to a survey that polled 500 businesses non-financial, “As merchandise prices rise, consumers tending to prefer less expensive goods, as they become more thrifty,” said a manager at a retailer.

Subject to anonymity, some 240 firms responded.

A manager from a machinery manufacturer said that they are concerned about currency fluctuations and the cost of raw material.

Oil prices have shot up to $100 per barrel due to global concern over Russian oil supply. Prices of other commodities, from metals and grain, have also risen to new highs.

At 118 dollars, the yen, which has been falling for five years now, is at its weakest point in five. This has further driven up oil prices and other imports to Japanese buyers.

Sixty-three percent of firms feared the worst from Ukraine’s crisis and fifteen percent feared disruptions to supply chains.

When asked what they wanted the government to concentrate on most, 63% chose to combat energy price rises and 50% selected economic growth strategies. 43% chose COVID-19.

According to the Kyodo news agency, Wednesday’s report said that the government was considering putting together a new economic stimulus package in order to ease the burden of high energy prices.

In addition, the government stated that it will increase its gasoline subsidies for oil distributors up to the maximum limit in order to ease cost pressure.