On Tuesday, the Nissan automaker paid the Russian government one Euro for the entirety of its Russian assets.
Following Russian President Vladimir Putin’s invasion of Ukraine in February, Nissan is just the most recent significant corporation to leave Russia.
According to Reuters, the agreement would cost Nissan some $687 million, but the firm doesn’t think it will have an impact on its fiscal year profits projection.
Nissan’s action comes months after the corporation severed commercial relations with Russia in March and halted operations at its St. Petersburg factory.
There are about 2,000 employees of the firm across the nation.
Makoto Uchida, president, and chief executive officer of Nissan, said in a statement on Tuesday, “I appreciate our Russian colleagues for their commitment to the business over many years on behalf of Nissan.
According to the statement, the Japanese carmaker transferred its ownership of Nissan Manufacturing Russia LLC to state-owned NAMI.
According to the Russian Ministry of Industry and Trade, the agreement would allow Nissan the option to acquire back the company after six years.
According to the Nikkei newspaper, junior alliance member Mitsubishi Motors Corp (7211.T) is also thinking about leaving Russia. According to a Mitsubishi representative, nothing has been determined.
The exit is happening as Nissan and Renault are planning a significant change in their partnership.
The two companies announced on Monday that they were in discussions regarding the future of their partnership, with Nissan expressing interest in funding a new Renault electric car initiative.
Two users with knowledge of the conversations told Reuters that the discussions, which may result in the alliance’s largest reset since longtime boss Carlos Ghosn was arrested in the year 2018, that has also increased the potential of Renault selling a fraction of its controlling interest in Nissan.
Nissan is permitted to repurchase the assets under the agreement within six years.
A number of other companies, like Marriott, McDonald’s, and a host of others, have also chosen to leave Russia and give their assets to the Russian government.
In June, Marriott closed all of its corporate headquarters in Moscow, while Alexander Govor, a Russian businessman, purchased every McDonald’s franchise in the nation.
At the time, Marriott said in a statement that it had “come to the conclusion that recently announced US, UK, and EU limitations will make it difficult for Marriott to continue to operate or franchise properties in the Russian market.
As a result of which Marriott decided to stop running Marriott International Franchansie in Russia.
Nissan’s withdrawal occurs days after deadly missile assaults by Russian forces this week on Kyiv and more than a dozen other Ukrainian cities.
Nissan will now be the most recent significant corporation to quit Russia since Moscow put tens of thousands of troops into Ukraine in February as a result of the arrangement.
It also echoes a move made by Renault, the largest stakeholder in Nissan, which in May sold a controlling stake in the Russian manufacturer Avtovaz to a Russian investor.
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