Nissan declared on Tuesday that it will transfer all of its activities in Russia to a government organization.
The Japanese manufacturer revealed that NAMI, a Russian government organization committed to the growth of the automobile sector, is expected to buy the firm’s operations in the country as hostilities between Ukraine and Russia rise ahead of the winter months. Nissan has the opportunity to repurchase its activities during the next six years, but will lose $100 billion, or $686 million, if the firm is sold for €1.
“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 anticipate any market action over the course of the fiscal year, so it does not expect the sale to have an impact on its full-year profits outlook.
According to a Yale School of Management research, over 1,000 Western corporations have declared that they are reducing their business in Russia beyond what is needed by international sanctions. Among the American corporations that have abandoned the country are Nike, Goldman Sachs, Apple, IBM, and McDonald’s.
The revelation comes as it seems like hostilities between Russia and Ukraine have risen. Earlier this week, 83 missiles were fired into Ukrainian cities, some of which hit the nation’s capital, Kyiv, where at least eight people were killed and where President Volodymyr Zelensky’s office building was hit. A recent bombing of the Kerch Bridge, which connects Crimea to mainland Russia, believed to be the cause of the coordinated attack. A part of the bridge fell into the Sea of Azov as a result of the attack, which was directed at fuel cells along the route.
Eight years ago, in a very contentious action that featured nuclear threats and a stepped-up military presence, Russia seized the Crimean peninsula. Vladimir Putin, the president of Russia, accused Ukraine of harming the civilian population in response to the collapse of the bridge.
“There is no doubt,” he said. “This is an act of terrorism aimed at destroying critically important civilian infrastructure.”
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