Nissan has reportedly sold its Russia-based business to a state-owned entity for 1 euro ($NZ1.73), incurring a loss of approximately $US687 million ($NZ1.2 billion) in the process.
State-owned NAMI will receive Nissan’s shares of its Russian arm, Nissan Manufacturing Russia LLC, which can be repurchased within the next six years according to Russia’s industry and trade ministry.
Included in the sale is Nissan’s production and research facilities in St Petersburg and its sales and marketing centre in Moscow reports Reuters.
The move comes as Russia continues to wage conflict with Ukraine and resembles similar actions taken by other carmakers like Toyota. Mazda is looking to make a similar move after it recently halted production in the country.
Renault, which owns a majority share in Nissan, also sold its shares in Russian carmaker Avtovaz.
However, Nissan’s move will also impact Renault which projects a 331 million Euro ($NZ573 million) loss of income in the second half of 2022.