Nissan Sells its Russian Business for Less Than $1 After Losing $687 Million

Nissan, a Japanese manufacturer, sold a state-owned business its operational headquarters and facility in Russia for less than $1. BusinessWeek Finance LP 2021 Nissan, a Japanese automaker, today said that its Russian operations had been sold for just one euro to a government-run company. All of Nissan Manufacturing Russia's shares will be transferred to the state-owned NAMI company, which sold 53,000 cars to Russians in 2021. As a result of the choice, another foreign manufacturer has pulled out of the Russian market, costing the business 100 billion yen ($687 million). It will provide NAMI with a fully operational Nissan factory in St. Petersburg and a sales and marketing operation in Moscow, with the option to purchase it all back again within six months. The company hasn't been able to locate enough parts to produce cars in that nation since March when international sanctions on Russia following its invasion and ongoing conflict with neighboring Ukraine began to bite. Despite the fact that Mitsubishi Motors, a junior member in the Renault-Nissan Alliance, continues to do business in Russia, Nissan stated in a statement that there was "no visibility" of a prospective shift in the market there. With 43% of Nissan's voting shares, Renault retains the majority of the firm and is the Alliance's top partner. Renault sold its stake in AvtoVAZ in May for just one ruble.