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Nissan suspended production at its plant in St. Petersburg, Russia, in March due to supply-chain disruptions after the invasion.
Photo:
IGOR RUSSAK/REUTERS
Nissan Motor Co.
said Tuesday that it would exit Russia and book a loss equivalent to $686 million, the latest car maker to respond to the Russian invasion of Ukraine.
The Japanese auto maker said it would sell all shares of its Russia unit to Moscow-based Central Research and Development Automobile and Engine Institute for one euro, or slightly less than a dollar. Nissan said it retained the option to buy back the entity and its operations within the next six years.
Nissan suspended production at its plant in St. Petersburg in March due to supply-chain disruptions after the invasion.
Other major global auto makers including Nissan’s alliance partner,
Renault SA,
have also pulled out of Russia or curtailed operations there. In May, Renault reached a deal to cede its 68% stake in Russia’s biggest auto maker, AvtoVaz, to the same Russian state-backed entity that is taking over Nissan’s operations.
The price was one ruble and Renault also retained a six-year option to buy back its shares, people familiar with the matter said at the time.
Toyota Motor Corp. said in September it was ending production at its factory in St. Petersburg.
Write to Kosaku Narioka at [email protected]
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