Nokian Tyres receives payment for sale of Russia operations
Sale to Tatneft now set to be completed “after registration formalities”
Nokia, Finland – Nokian Tyres has received the sale price of €285 million from PJSC Tatneft for the sale of its operations in Russia, the Finnish group announced 16 March.
The 'total permissible transaction price' defined by the Russian governmental commission was RUB23,050 million, and the exchange applied was determined by the Russian Central Bank on the day.
“After registration formalities in Russia, the transaction will be completed, and Nokian Tyres’ operations in Russia will end,” according to the Nokia-based tire maker.
Nokian said the sale was because the war in Ukraine had made it “no longer feasible nor sustainable” for it to continue operations in Russia.
“The exit process has been long, but we are satisfied that we are in the final stage of completing it,” said president and CEO Jukka Moisio.
The final impacts of the transaction will be disclosed in the first quarter 2023 interim report on 25 April.
Nokian Tyres has been operating in Russia since 2005.
In 2021, 80% of the Finnish tire maker’s passenger car tires were produced in Vsevolozhsk, Russia and the Russia-Asia business area represented 20% of the company’s net sales.
In June last year, Nokian announced plans for a controlled exit from Russia, as the war on Ukraine and subsequent sanctions had made it impossible to continue activities in the country.
Nokian valued its assets in Russia and Belarus at around €590 million at the end of the third quarter of 2022.