Nissan plant in St. Petersburg will assemble Chinese cars

The Ministry of Industry and Trade announced the nationalization of the Russian assets of Nissan Manufacturing Rus in mid-October. The plant, a research center in Saint Petersburg and a sales and marketing center in Moscow will be sold to FSUE NAMI, under the Ministry of Industry and Trade, for 1 euro. Nissan itself estimated the company’s one-time loss due to its departure from Russia at about $686 million.

As part of the agreement, the company will be able to buy back a stake over the next six years with compensation for investments by the Russian Federal State Unitary Enterprise or its partner in the amount of up to €180 million at a rate of €30. million per year. Closing of the transaction for the transfer of local assets from Nissan to NAMI is expected in early November.

According to the publication’s interlocutors, Kamaz may become a production partner, but there are also “other competitors”. FAW is being considered for loading the plant, but experts doubt the latter would be interested in cooperating because of the option to return to the automaker. However, FAW is a state-owned company, so the decision could be political.

In the summer of 2022, Nissan announced the suspension of production in Russia for the first half of the fiscal year due to events in Ukraine. The company then stated that they would monitor the situation. Nissan became the third company to announce the complete cessation of production in Russia, before France’s Renault and Japan’s Toyota announced it.