Japanese car manufacturer Nissan will continue to halt their Russian-Ukrainian operations, even after a $499 million financial hit from their actions. The company does not expect to continue working in the warring region for the next financial year however.
In March the company stopped car deliveries to Russia. Shortly following they altogether halted their business in the country,, which included shutting down their St Petersburg plant, partly due to supply shortages.
“There are many uncertainties over the impact of the geopolitical issues surrounding Russia and Ukraine, which may have a material impact on the Group’s financial position and operating results for the fiscal year ended March 31, 2023, and thereafter,” the company’s spokespeople stated during a financial report in Yokohama.
The last financial year, which ended in March, was a bad one for the company. 15.2 billion yen of their 52.6 billion financial hit came from direct impacts on the company’s business operations.
37.4 billion yen came from their stake in automobile partner Renault. The state of Russia was the French manufacturer’s second largest market due to their stake in Russian manufacturer AvtoVAZ.
Nissan’s sales in Russia fell down to 605, 84% less than the 3,681 of the previous financial year according to the Association of European Businesses.
Worldwide sanctions have led to a fall of 79% in Russia’s car market during the month of April. Manufacturers are lacking in essential materials for car manufacturing, leading to plant closures.
This, alongside Western pressure to pull out of the nation’s financial market, have put companies like Nissan in a tough spot.
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