- Nissan, a carmaker, announced that it will leave Russia and sell its operations to the state-owned NAMI. The price was less than $1.
- Nissan has the option of buying back the entity and its operations in the next six-years.
- This agreement allows Russian operations to continue. It also preserves 2,000 job opportunities in the company.
The Japanese company, which joined a consortium of Japanese companies Tuesday, announced that Nissan Carmaker has sold its Russian business for 1 euro or $0.97. Long list of international companies leaving the country.
Insider was also confirmed by the carmaker.
It announced that the Japanese automaker would transfer all Russian operations to NAMI (the state-owned Central Research and Development Automobile and Engine Institute), it stated in a Press release This includes its manufacturing and R&D facilities in St. Petersburg, as well as a sales and marketing center in Moscow.
Nissan anticipates a loss of 100 billion Japanese Yuen. — This is almost $700,000,000 —It is retaining its independence despite Russia’s exit and sale. Guidance for the entire year.In June, the company stated that it expected a 18.7% year-over-year increase in net revenues in 2022. However, operating profit is expected not to change in the same period.
Nissan has the option of buying the entity and its operations back within six years.
Denis Manturov was the minister of Russian Industry and Trade. StatementThis deal is “significant” for the industry because it preserves 2,000 jobs as well as operational capabilities. Nissan announced that its employees’ jobs will be protected for twelve months.
“While we can’t continue operating on the market, however, we have found the best solution to support people,” Makoto Uchida (the president and CEO at Nissan) said.
After Ukraine invaded Ukraine on February 24, 2018, Nissan suspended Russian operations in March. This triggered sweeping sanctions against Moscow.
The Japanese carmaker is selling its Russian business in the same way as its top shareholder. Renault,This company also sold its stakes at Russia’s largest automobile manufacturer for a Only 1 ruble for symbolic sumIn May. Renault also included a six-year buyback option.
