Japanese automaker Nissan Motor Co said on October 11 it planned to sell its Russian operations to its local partner and withdraw from manufacturing there.
The company said its executive committee approved the sale to Russia’s Central Research and Development Automobile and Engine Institute, or NAMI.
The sale includes Nissan’s factory and R&D facilities in St Petersburg and its sales and marketing centre in Moscow, it said. The company will operate under a new name.
Nissan did not give a dollar value for the sale but said it would log a 100 billion yen ($1 billion) “impact” from its exit from Russia.
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Nissan began making SUVs in St Petersberg in 2009 and suspended manufacturing in Russia in March after the invasion of Ukraine.
The company said the terms of the sale give Nissan the option to buy back its Russian business within the next six years.
Nissan said its employees in Russia would receive “employment protection” for a year.
The sale is subject to regulatory approvals and is expected to be completed within weeks, the company said.
