Japanese automaker giant Nissan has made a surprising decision to leave the Russian market. What is even more surprising is that Nissan has announced to sell its business in Russia to NAMI, a government-owned unit, for less than a dollar. The brand made this claim on Tuesday. This means that the Japanese automaker has suffered a loss of $ 687 million.
The move comes months after the company was forced to stop production in the country. Also, it means that after Russia invaded Ukraine in February this year, Nissan has become the latest major automaker to exit Russia. Nikkei Asia claims that Mitsubishi, another major Japanese car brand under the umbrella of the Renault-Nissan-Mitsubishi alliance, is also considering exiting the Russian market.
“Nissan’s executive committee has approved the sale of its Russian assets to the Russian Federation… This includes Nissan’s production and research facilities in St. Petersburg and sales and marketing centers in Moscow,” Japan’s ministry said in a statement. ” Under the terms of the deal, Nissan “can buy back its share within the next six years”.
Nissan said in a separate statement that the deal would be finalized in the coming weeks. Under the deal, the company will take a one-time payment of about 100 billion yen ($686.5 million).
The statement said its 2,000 or more employees in Russia would receive “job security” for 12 months. No financial details of the transaction were provided by both parties on Tuesday.