Nissan is promoting all of its Russian belongings for lower than $1 because it pulls overseas 7 months into the warfare

Greater than seven months into the Ukraine Struggle, international corporations are nonetheless submitting out of Russia.

Over 1,000 corporations have made the choice to shut down operations in Russia and depart the nation after the broadly condemned invasion of Ukraine on Feb. 24.

Months later, the exodus nonetheless isn’t over. On Tuesday, Japanese carmaker Nissan turned the most recent to exit the nation, saying a sale of all its remaining Russian belongings for a largely ceremonial charge.

“On behalf of Nissan, I thank our Russian colleagues for his or her contribution to the enterprise over a few years. Whereas we can’t proceed working available in the market, we’ve got discovered the absolute best resolution to help our folks,” Nissan president and CEO Makoto Uchida stated in an announcement.

Nissan will unload its Russian belongings to state-owned Central Analysis and Growth Vehicle and Engine Institute, also called NAMI, for a token one euro ($0.97) charge, in line with Reuters.

The exit from the nation is an costly one, as Nissan is shedding roughly 100 billion Japanese yen in worth, in line with the corporate’s assertion, or round $686 million. However the firm will nonetheless have an opportunity to recoup its losses, with a clause allowing the automaker to purchase again its belongings throughout the subsequent six years.

Nissan didn’t instantly reply to Fortune’s request for remark.

Closing down

In exiting Russia, Nissan is forsaking some priceless belongings, together with a producing facility in Saint Petersburg and a gross sales middle in Moscow. However regardless of their worth, these properties have possible been a burden to the Japanese carmaker for months.

Final March, Nissan briefly halted manufacturing at its Russia plant due to difficulties acquiring elements from exterior the nation. Nissan in whole employed over 2,000 workers in Russia, and in 2021 the Saint Petersburg manufacturing facility produced 45,040 autos, Automotive Information Europe reported on the time.

The pause was purported to final solely three weeks however was prolonged in early April as the corporate continued to run into logistical difficulties. The plant has remained idle since then, with the pause having been prolonged one final time in September earlier than the sale to NAMI was finalized.

Story continues

In an announcement, Nissan stated that NAMI would handle “future passenger car tasks.” The corporate additionally introduced that each one of its employees remaining in Russia would proceed to obtain worker safety advantages for the following 12 months.

Mass exodus

Whereas operations within the nation have been on pause since March, Nissan’s official Russia exit comes months after different automotive corporations determined to go away the corporate.

French carmaker Renault signed an settlement with Russian authorities to promote its belongings within the nation to NAMI again in Might, additionally with an possibility to purchase again its stake throughout the subsequent six years. Renault didn’t disclose how a lot it bought its Russian belongings for, though the New York Occasions reported the charge to be as little as one Russian ruble.

Some carmakers, like Nissan, stored manufacturing on maintain for months however ultimately determined to shut down operations because of ongoing difficulties in acquiring elements. Japanese firm Toyota additionally suspended manufacturing in Russia again in March, however introduced to be terminating operations within the nation solely final month.

Many corporations acted shortly by leaving the nation inside a month or two of the invasion, together with German sportswear firm Adidas and meals producer Oetker.

However some took longer to account for the futures of huge workforces nonetheless in Russia. Quick-food chain McDonald’s closed down its over 800 eating places in Russia in March after receiving criticism on-line and from buyers for not exiting the nation sooner. The corporate ultimately left Russia in Might when it bought off all its belongings to a Russian purchaser, a call McDonald’s CEO Chris Kempczinski later informed Fortune had been delicate contemplating the way forward for the corporate’s 62,000 Russian workers.

This story was initially featured on Fortune.com

Extra from Fortune:

A 2007 flashback: house flippers are in hassle once more

Managing Gen Z is like working with folks ‘from a unique nation’

The Renault Nissan empire as soon as held collectively by fugitive Carlos Ghosn might slowly be unraveling

PayPal tells customers it’ll superb them $2,500 for misinformation, then backtracks instantly