Nissan Motor Co. said Tuesday it is pulling out of the Russian market, joining a growing list of companies exiting the country after its invasion of Ukraine.
The company said it is selling its business to a state-run research institute and will post a one-time loss of about 100 billion yen ($686 million). The automaker said it will keep its full-year earnings forecast unchanged despite the loss.
The move comes after it suspended production at its factory in St. Petersburg in March, citing supply chain disruptions following the war in Ukraine. With no sign of improvement in sight, the company decided it is unable to resume operations, it said.
With the decision, Nissan is joining the ranks of its rival automakers. Toyota Motor Corp. said last month that it is exiting Russia by ending production at its factory in the same city in the country's northwest. Mazda Motor Corp. is also in talks with a local partner to end production in Russia.
Nissan has produced sport utility vehicles and other cars at its St. Petersburg factory. It manufactured about 45,000 units in 2021.
Employees at its Russian operations are guaranteed one year of employment at the new owner Central Research and Development Automobile and Engine Institute, Nissan said.
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