MOSCOW: Japanese carmaker Nissan will sell its Russian assets – including a factory in St. Petersburg – to the Russian government, the Ministry of Industry and Trade in Moscow announced on Tuesday.
The announcement comes after Nissan suspended production at the plant in Russia’s second city in March, shortly after Moscow sent troops to Ukraine.
“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 Saint Petersburg as well as a sales and marketing center in Moscow,” the ministry said in a statement.
Under the terms of the agreement, Nissan “can buy out its share within the next six years,” he added.
Nissan said in a separate statement that the deal will be finalized “in the coming weeks,” adding that the company will suffer a “one-time impact” of around 100 billion yen ($686.5 million).
He added that his roughly 2,000 employees in Russia will enjoy “job protection” for 12 months.
No financial details of the transaction were provided by either party on Tuesday.
“On behalf of Nissan, I thank our Russian colleagues for their contribution to the company for many years. Although we cannot continue to operate in the market, we have found the best possible solution to support our employees,” said Nissan CEO Makoto Uchida said in the statement. statement.