As of this past Tuesday, automaker Nissan issued an announcement that it now has plans to sell off all operations seated in Russia to an entity within the nation’s government.
As the war taking part between Russia and Ukraine continues to escalate rapidly in the run-up to the winter months, the Japanese-based automaker stated that NAMI, a government body out of Russia dedicated to the development of the automotive industry, is slated to take over the Japanese firm’s business locations across the country. Nissan is slated to lose out on over ¥100 billion, or $686 million, as the company chose to sell everything for a massive €1, with the option to buy back its operations in the area at some point within the next six years.
“On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years,” explained Makoto Uchida, the CEO of Nissan, in a recent release. “While we cannot continue operating in the market, we have found the best possible solution to support our people.”
Nissan does not think this choice will end up affecting its full-year earnings guidance as a consequence of the sale since the company had not made use of the market or anything within it for well over the past fiscal year.
Well over 1,000 companies in the West have announced their intentions to downgrade their total operations throughout Russia beyond any extent mandated by current international sanctions, as reported by an analysis coming from the Yale School of Management. Nike, Goldman Sachs, Apple, IBM, and McDonald’s are a selection of the major American corporations which have chosen to entirely pull out their businesses from the country.
This particular report went public just as the hostilities between Russia and Ukraine appear to have escalated rapidly over the past few weeks. Recently, almost 83 missiles slammed into a selection of high-population Ukrainian cities earlier this week, including quite a few which directly struck the nation’s capital city of Kyiv, in which at least eight people have been announced dead and additional projectiles rained down around the office building of President Volodymyr Zelensky. This seemingly coordinated blitz-style tactic appeared to be entirely in retaliation for the recent destruction of a section of the Kerch Bridge, which is the main artery connecting Crimea to mainland Russia. The attack seemingly targeted a series of fuel tankers sat along the roadway and initiated a chain reaction that blew entire sections of the bridge down into the Sea of Azov.