Michelin, Nokian first tyre companies to quit Russia – Reuters

June 29, 2022 by No Comments

The logo of French tyre maker Michelin is seen on tyre of a Formula E racing car on display at the innovative center of German postal and logistics group Deutsche Post DHL in Troisdorf near Bonn, western Germany March 9, 2016. REUTERS/Wolfgang Rattay

Register now for FREE unlimited access to Reuters.com

  • Michelin has 250 mln euro balance sheet exposure on Russian ops
  • Michelin says move will not impact its financial guidance
  • Looming new Russian law accelerating foreign firms exit
  • Nokian plans ‘controlled exit’, will book 300 mln eur charge

June 28 (Reuters) – Michelin (MICP.PA) plans to hand over its Russian activities to a new entity under local management by the end of the year and rival Nokian Tyres said it would quit the country, the first Western tyre makers to give up doing business in Russia.

The French company, whose Western rivals in Russia include Italy’s Pirelli (PIRC.MI) and Germany’s Continental AG (CONG.DE), said it had become impossible to resume output owing to supply chain problems related to the sanctions against Moscow.

Foreign companies seeking to exit Russia over the war in Ukraine also face the prospect of a new law being passed in the coming weeks to allow Moscow to seize assets and impose criminal penalties.

Register now for FREE unlimited access to Reuters.com

Tags:

Leave a Comment

Your email address will not be published.