Nissan announced on Tuesday that the company will sell all operations in Russia to an entity of the nation’s government.
As warfare between Ukraine and Russia escalates ahead of the winter months, the Japanese automaker announced that NAMI, a Russian government body dedicated to automotive industry development, is slated to acquire the firm’s business in the nation. Nissan, which will lose ¥100 billion, or $686 million, as the company is sold for €1, has the option to repurchase its operations within the next six years.
“On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years,” Nissan CEO Makoto Uchida remarked in a statement. “While we cannot continue operating in the market, we have found the best possible solution to support our people.”
Nissan does not expect an impact on its full-year earnings guidance as a result of the sale since the company did not assume any activity in the market over the course of the fiscal year.
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