On Tuesday, Nissan Motor Co Ltd said it would hand over its business in Russia to a state-owned entity for 1 euro (USD 0.97), incurring a loss of around USD 687 million in the costly exit from the country by a global company.

Reportedly, the Japanese automaker transfers its Nissan Manufacturing Russia LLC shares to state-owned NAMI. The said deal will give Nissan the right to buy back the business within six years.

Russia’s industry and trade ministry stated that the sale to NAMI will include Nissan’s production and research facilities in St Petersburg and its sales and marketing centre in Moscow.

The Japanese carmaker said it expected an extraordinary loss of around 100 billion yen (USD 687 million) but maintained its earnings forecast for the financial year ending in March. Renault, owning 43 per cent of Nissan, estimated the decision by Nissan would lead to a 331 million euro hit to its net income for the second half of 2022.

It is to be noted that Nissan suspended production at its St Petersburg plant in March due to supply chain disruptions. Since then, the company and its local unit have been monitoring the situation.

Founded in 1933, Nissan is a Japanese multinational automobile manufacturer. The company is headquartered in Yokohama and sells its vehicles under the Nissan, Infiniti, and Datsun brands.