Nissan takes $687 million loss as it sells Russian business for 1 euro

Nissan Motor Co Ltd volition manus implicit its concern successful Russia to a state-owned entity for 1 euro ($0.97), it said connected Tuesday, taking a nonaccomplishment of astir $687 cardinal and exiting the state months aft it was forced to halt accumulation there.

The Japanese institution volition transportation its shares successful Nissan Manufacturing Russia LLC to state-owned NAMI, it said. The woody volition springiness Nissan the close to bargain backmost the concern wrong six years, Russia's manufacture and commercialized ministry said.

The woody makes Nissan the latest large institution to exit Russia since Moscow sent tens of thousands of troops into Ukraine successful February. It besides mirrors a determination by Nissan's apical shareholder, French automaker Renault, which sold its bulk stake in Russian carmaker Avtovaz to a Russian capitalist successful May.

The merchantability to NAMI volition see Nissan's accumulation and probe facilities successful St Petersburg arsenic good arsenic its income and selling halfway successful Moscow, the ministry said.

Nissan said it expected an bonzer nonaccomplishment of astir 100 cardinal yen ($687 million), but maintained its net forecast for the fiscal twelvemonth ending successful March.

Nissan had suspended accumulation astatine its St. Petersberg works successful March owed to proviso concatenation disruptions. Since then, the institution and its section portion had been monitoring the situation, it said. But determination was "no visibility" of a alteration to the outer environment, Nissan said, prompting it to determine to exit.

Junior confederation spouse Mitsubishi Motors Corp is besides considering exiting Russia, the Nikkei paper said. A spokesperson for Mitsubishi said thing had been decided.

The exit comes arsenic Nissan has embarked connected a large displacement successful its narration with Renault. The 2 said connected Monday they were successful talks astir the aboriginal of their alliance, including Nissan considering investing successful a caller electrical conveyance task by Renault.

Those talks, which could punctual the biggest reset successful the confederation since the 2018 apprehension of long-time enforcement Carlos Ghosn, person besides included the anticipation of Renault selling immoderate of its controlling involvement successful Nissan, 2 radical with cognition of the talks person told Reuters.

Renault reportedly sold its involvement successful Avtovaz for 1 ruble ($0.02).

The Nissan woody was "of large value for the industry," Russia's Industry and Trade Minister Denis Manturov said successful a statement.