Carmaker Nissan sells Russian assets to Japanese state

Japanese carmaker Nissan on Tuesday approved the sale of its Russian assets to the state-owned Central Research and Development Automobile and Engine Institute (NAMI).

The transfer of operations include Nissan's manufacturing and Ramp;D facilities in St. Petersburg, and sales and marketing center in Moscow, which will operate under a new name, according to a statement from Nissan.

"While we cannot continue operating in the market, we have found the best possible solution to support our people," said CEO Makoto Uchida.

The deal followed Nissan's suspension of operations from March in the Russian market amid the war in Ukraine.

All of Nissan's employees in the market will receive employment protection of 12 months, the company said.

Under the deal, Nissan has the right to buy back the business within the next six years.

It will take a one-off impact of nearly 100 billion yen ($686.2 million) from this exit and maintain its full-year guidance, according to the statement.

In May, French automaker Renault transferred its Russian assets to state ownership as France decided to leave the country due to the war.