Japanese automaker Nissan sells its Russian assets to Moscow

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Japan‘s Nissan sells its Russian assets to Moscow

The deal marks the latest outing by a big company since Russia sent tens of thousands of troops to Ukraine in February

Japanese carmaker Nissan is selling its Russian assets to the Russian state, with an option to buy the company within six years, the Russian Ministry of Industry and Trade announced on Tuesday.

In a statement, Nissan said it had decided to exit the Russian market and expected to incur an extraordinary loss of around 100 billion yen ($686.72 million) from the asset transfer.

The deal marks the latest big company exit since Russia sent tens of thousands of troops to Ukraine in February and reflects a move by French automaker Renault, which sold its majority stake in Russian automaker Avtovaz to a Russian investor in May.

Also read: Putin promises ‘tougher’ attacks after Russian missiles hit Ukraine

The sale to state-owned NAMI will include Nissan’s production and research facilities in St. Petersburg as well as its sales and marketing center in Moscow, the ministry said.

A source with knowledge of the deal said a “token sum” had been paid. Renault reportedly sold its stake in Avtovaz for one ruble ($0.0157).

“‘Nissan Manufacturing Rus’ is transferring its assets to the state – a matter of great importance for the industry,” Industry and Trade Minister Denis Manturov said in a statement.

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