The government approved the sale of the Russian business of Nokian Tires to Tatneft

The Government Commission for the Control of Foreign Investments approved the sale of the Russian business of Nokian Tires to the oil company “Tatneft“. About it informed press service of the Finnish company.

“According to the decision of the government commission of the Russian Federation, the total allowable value of the transaction is 23.5 billion rubles,” the report says. In euro equivalent, the transaction amount will be 286 million euros.

The company also pointed to the remaining “significant uncertainties” associated with the timing of the transaction, as well as with the exchange rate of the ruble against the euro on the date of payment. The completion of the deal also depends on the successful completion of due diligence checks for recent changes in sanctions and the transfer of funds, Nokian Tires added.

On the signing of a deal to sell the Russian business of Tatneft to Nokian Tires informed at the end of October last year. Then the Finnish company noted that the transaction amount would be about 400 million euros.

Nokian Tires has been operating in Russia since 2005. In 2021, about 80% of the company’s passenger car tires were produced in Russia, the press service of Nokian Tires specified. At the same time, the share of sales of the company’s products in Russia and Asia was about 20%.

In April last year, the European Union adopted the fifth package of sanctions against Russia, which includes a ban on the import of tires into the EU. The head of the Nokian concern in the Russian Federation, Andrey Pantyukhov, said that the restrictive measures made it “impossible to continue working as part of the concern.” In June, Nokian announced its withdrawal from Russia.