The executive committee of Nissan has approved on Tuesday the sale of all its operations in Russia for one euro to the state-owned NAMI - Central Institute for Research and Development of Automobiles and Motors - signaling its exit from this market. The withdrawal will cost the Japanese brand about 700 million euros at current exchange rates.
Nissan started building SUVs in St. Petersburg in 2009. It suspended production in Russia in March after the invasion of Ukraine. Since then, the company and its local unit have been monitoring the situation. But there is no "visibility" of a change in the environment, Nissan said, leading to exit. "Although we cannot continue to operate in the market, we have found the best possible solution to support our people," said Nissan Chairman and CEO Makoto Uchida.
The sale is subject to regulatory approvals and is expected to be completed within weeks. The move mirrors that of Nissan's main shareholder, French automaker Renault, which sold its majority stake in Russian automaker Avtovaz to Russian capital in May.
Nissan has embarked on a major change in its relationship with Renault. The two reported Monday that they were in talks about the future of their alliance, including the possibility of Nissan investing in a new electric vehicle venture from Renault.
