Nissan sells its assets in Russia to the Russian state

Japanese car manufacturer Nissan sold all its assets in Russia to the Russian state, announced Tuesday the government of that country, the target of Western sanctions after its offensive against Ukraine.

“Russian assets of Nissan Manufacturing Rus they will become state property,” the Ministry of Industry and Trade said. The operation includes a Nissan factory in St. Petersburg that has been paralyzed since March and a sales and marketing center in Moscow, it said.

Nissan’s Executive Committee approved the sale of its Russian assets to the Russian Federation,” the ministry added.

This transfer shows Moscow’s firm intention to nationalize the assets of large foreign companies that are considering ceasing their operations in Russia, against the backdrop of tensions over Ukraine.

The Japanese automaker confirmed the information in a separate statement, saying “the sale is expected to be finalized in the coming weeks following approval by the relevant authorities.”

“Terms of sale will give Nissan the option to buy back the entity and its operations in the next six years,” said the Japanese company, leaving open the possibility of a return to the country.

Neither side provided financial details on Tuesday.

Since March, the Nissan plant in St. Petersburg has been paralyzed due to logistical difficulties related to international sanctions imposed on Moscow over the Russian occupation of Ukraine.