JAPANESE automaker Nissan is selling its Russian assets to Russian state ownership, with an option to buy back the business within six years, Russia's industry and trade ministry said on Tuesday (Oct 11).
Nissan in a statement said it had decided to exit the Russian market and expected to incur an extraordinary loss of approximately 100 billion yen (S$988 million) from the asset transfer.
The deal marks the latest major company exit since Russia sent tens of thousands of troops into Ukraine in February and mirrors a move by French carmaker Renault, which sold its majority stake in Russian carmaker Avtovaz to a Russian investor in May.
The sale to state-owned NAMI will include Nissan's production and research facilities in St Petersburg as well as its sales and marketing centre in Moscow, the ministry said.
A source with knowledge of the deal said a "symbolic sum" had been paid. Renault reportedly sold its stake in Avtovaz for one rouble (US$0.0157).
"'Nissan Manufacturing Rus' is transferring its assets to the state - a deal of great significance for the industry," Industry and Trade Minister Denis Manturov said in a statement. REUTERS