Nissan Motor announced this week that it will be withdrawing from Russia in response to the Russian invasion of Ukraine earlier this year, with an expected loss of $686 million. The automaker is planning to sell shares of its Russia unit to state-owned NAMI for just under a dollar, with the option to purchase back its Moscow operations at any point within the next six years.
Nissan already halted production at its St. Petersburg facility in March, citing supply chain disruptions as the cause. Despite the loss, Nissan has not made any changes to its earnings forecast for the financial year.
Several other major automakers have also pulled out of Russia in response to the invasion including Renault and Toyota. Mitsubishi Motors Corp is also considering exiting Russia, according to media sources.
Renault is Nissan’s top shareholder but there have been increased rumours recently about a shift in the relationship. This Monday, the two automakers announced that they were in talks about the future of their partnership, which included Nissan considering an investment in Renault’s new electric vehicle venture.
