Nissan sells up in Russia to state-owned firm for €1

The deal makes Nissan the latest major company to leave Russia since Moscow invaded Ukraine in February.

Nissan will hand over its business in Russia to a state-owned entity for €1, it said, taking a loss of around €687m in the latest costly exit from the country by a global company.

The Japanese automaker transfer its shares in Nissan Manufacturing Russia to state-owned Nami, it said. The deal will give Nissan the right to buy back the business within six years, Russia's industry and trade ministry said.

The deal makes Nissan the latest major company to leave Russia since Moscow invaded Ukraine in February. It also mirrors a move by Nissan's top shareholder, French automaker Renault, which sold its majority stake in Russian carmaker Avtovaz to a Russian investor in May.

The sale to Nami will include Nissan's production and research facilities in St Petersburg as well as its sales and marketing centre in Moscow, the ministry said.

Nissan maintained its earnings forecast for the financial year ending in March.

Renault, which owns 43% of Nissan, estimated the decision by its Japanese partner would lead to a €331m hit to its net income for the second half of 2022.

Nissan had suspended production at its St Petersburg plant in March due to supply chain disruptions. Since then, the company and its local unit had been monitoring the situation, it said. But there was "no visibility" of a change to the external environment, Nissan said, prompting it to decide to exit. 

Reuters