Nissan Motor announced on Tuesday that it will sell its operations in Russia to a state-owned firm for 1 euro ($0.97), incurring a loss of almost $687 million in the latest pricey outflow of a major corporation from the nation.
According to the Japanese carmaker, state-owned NAMI will get its interests in Nissan Manufacturing Russia. According to the Russian Ministry of Industry and Trade, the agreement would allow Nissan the option to acquire back the company after six years.
Nissan will now be the most recent significant corporation to quit Russia since Moscow put tens of thousands of troops into Ukraine in February as a result of the arrangement. It also echoes a move made by Renault, the largest shareholder in Nissan, which sold a Russian investor its controlling ownership in the Russian manufacturer Avtovaz.
According to the ministry, Nissan’s St. Petersburg production and development facilities as well as its Moscow sales and marketing headquarters will be sold to NAMI.
Nissan reaffirmed its profits projection for the fiscal year that ends in March but said it anticipated an exceptional loss of around 100 billion yen ($687 million).
The decision by Nissan’s Japanese partner is expected to cost Renault, which owns 43% of Nissan, 331 million euros in net income in the second half of 2022.
Due to supply chain issues, Nissan had to halt operations at its St. Petersburg facility in March. The business and its local affiliate have been keeping an eye on the issue ever since, it claimed. But “no visibility” of a change to the external environment existed.
