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Nissan Is Halting Russian Production For Six Months Due To The War


Nissan has extended its suspension of production in Russia through the first half of the business year that started April 1.

While speaking during Nissan’s annual general meeting, chief executive Makoto Uchida said the decision was made due to there being little prospect of the situation improving.

“We believe this situation could become more serious and prolonged,” a Nissan spokesman said while quoting Uchida.

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Nissan first suspended production in Russia in March, shortly after the invasion of Ukraine started but it isn’t showing any signs of completely cutting ties with the country.

In fact, Reuters reports that just 2.4 per cent of Japanese companies operating in Russia have cut ties since the start of the invasion on February 24. Nissan’s alliance partner Renault has withdrawn from Russia despite once having a significant presence there through its majority ownership of AvtoVAZ.

In mid-May, Nissan revealed that it had written-off its Russian business in its forecast for the next fiscal year ending March 31, 2023, taking a 52.6 billion yen ($499 million) financial hit from its Russian and Ukrainian operations.

“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,” Nissan said at the time, noting that the lack of sales in Russia would have a “material impact” on its 2023 financial year results.

Nissan operates a factory in St. Petersburg where it builds the X-Trail, Murano, Qashqai, and Terrano. The facility has an annual capacity of 100,000 vehicles.


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