Nissan: Nissan decided to leave Russia, sold the entire business for just one euro, what is the reason.

Japanese auto giant Nissan (Nissan) has decided to leave the Russian market. What is even more surprising is that the automaker has decided to hand over its business in Russia to NAMI, a government-owned unit, for just one euro. The car brand made this claim on Tuesday. This means the Japanese automaker has lost $687 million.

The move comes months after the company was forced to stop production in the country. Furthermore, it means that after Russia invaded Ukraine in February this year, Nissan has become the latest major automaker to exit Russia. Nikkei Asia claims Mitsubishi, another major Japanese car brand under the umbrella of the Renault-Nissan-Mitsubishi alliance, is also considering exiting the Russian market.

Nissan will hand over its operations in Russia to a state-owned company, including its manufacturing plant in St. Petersburg. Nissan’s move reflects the decision of its alliance partner Renault. The French automaker sold its majority stake in Russian carmaker Avtovaz to a Russian investor in May this year. Which was also touted as an effect of the Russo-Ukraine War.

Nissan halted production activity at its St Petersburg plant in March this year due to massive supply chain disruptions caused by the Russo-Ukraine war. It said that since then he was monitoring the situation. But there is no scope for change in the external environment. Which prompted Nissan to decide to exit the Russian market. However, despite leaving a key market and losing such a hefty amount in the process, Nissan is maintaining its earnings forecast for the current fiscal year ending March 2023.

Meanwhile, Renault and Nissan are in talks about the future of their current alliance. In which Nissan is looking to invest in a new electric vehicle venture by the French auto giant.