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  • Carmaker Nissan said it is exiting Russia and selling its operations to state-owned NAMI for under $1.
  • The deal gives Nissan the option to buy back the entity and its operations within the next six years.
  • The deal allows for the Russian operations to continue and preserves 2,000 jobs in the company.

Carmaker Nissan has sold its Russian business to a state-owned company for just 1 euro, or $0.97, the Japanese company said on Tuesday, joining a long list of international firms exiting the country.

The carmaker separately confirmed the sale price to Insider.

The Japanese automaker will transfer all its Russian operations to NAMI, the state-owned Central Research and Development Automobile and Engine Institute, it said in a press release. This includes its manufacturing and R&D facilities in St. Petersburg, as well as a sales and marketing center in Moscow.

Nissan expects to book a one-time loss of 100 billion Japanese yen that’s nearly $700 million — from the sale and exit from Russia, but it is maintaining its full-year guidance. The company said in June it expects a 18.7% on-year rise in net revenue in 2022, while operating profit is expected to stay flat in the same period.

However, the deal gives Nissan the option to buy back the entity and its operations within the next six years, the carmaker added.

Denis Manturov, the minister of Russian Industry and Trade, said in a statement the deal is a “significant” one for the industry, as it preserves 2,000 jobs and operational capabilities. Nissan said in its announcement that the jobs of all its employees will be protected for 12 months.

“While we cannot continue operating in the market, we have found the best possible solution to support our people,” said Makoto Uchida, the president and CEO of Nissan.

Nissan suspended its Russian operations in March after the country invaded Ukraine on February 24, triggering sweeping sanctions against Moscow.

The Japanese carmaker’s sale of its Russian business mirrors that of its top shareholder Renault, which also sold its stake in Russia’s largest carmaker for a symbolic sum of just 1 ruble in May. Renault’s deal also came with a six-year buyback option.

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