Nissan said that it would sell its Russian operations to a state-owned company for 1 euro ($0.97), suffering a loss of approximately 100 billion yen ($687 million). The choice represents the most expensive departure from the nation by a multinational corporation.
According to the automaker, state-owned NAMI will receive its interests in Nissan Manufacturing Russia. According to the Russian Ministry of Industry and Trade, the agreement will allow Nissan the option to acquire back the company after six years.
Nissan’s auto assembly facility, research facilities, and sales and marketing hub in Moscow will all be included in the transaction.
Due to supply chain issues, Nissan had to halt production at its St. Petersburg plant in March. The business and its local affiliate have been keeping an eye on the situation ever since it claimed. Nissan claimed that there was “no visibility” of an alteration to the exterior environment, which led it to choose to leave.
According to the Nikkei newspaper, junior alliance partner Mitsubishi Motors is also thinking about leaving Russia. According to a Mitsubishi representative, nothing has been decided.
The transaction, which parallels the one taken by its alliance member Renault, which sold its controlling stake in the Russian automaker AvtoVAZ to a Russian investor in May, is the most significant firm exit since Russia launched tens of thousands of troops into Ukraine in February. Reportedly, Renault sold its shares in AvtoVAZ for one ruble ($0.0157).
Denis Manturov, Russia’s minister of industry and trade, said in a statement on Tuesday that “Nissan Manufacturing Rus” is transferring its assets to the state, which is a deal of tremendous significance for the industry.
In Russia, Nissan sold 53,000 automobiles in 2016.
The departure occurs as Nissan and Renault are beginning a significant change in their partnership. The partners said on Monday that they were in discussions about the future of their partnership, with Nissan expressing interest in funding a new Renault electric vehicle initiative.
Two people with knowledge of the conversations said that the discussions, which could lead to the greatest reset in the alliance since the arrest of longtime boss Carlos Ghosn in 2018, have also discussed the prospect of Renault selling some of its controlling position in Nissan.
The decision by Nissan’s Japanese partner, according to Renault, which owns 43 percent of Nissan, will cost Renault’s net income 331 million euros in the second half of 2022.
