Sold: Tatneft pays 285 million euros for Nokian Tyres’ Russian operations

Nokian Tyres reports that it has received the sale price of 285 million euros from PJSC Tatneft for the sale of its operations in Russia. The total permissible transaction price defined by the Russian Governmental Commission was 23,050 million rubles. Now there are just “registration formalities” before the transaction completes and Nokian Tyres’ operations in Russia therefore end.

“Due to the war in Ukraine it was no longer feasible nor sustainable for Nokian Tyres 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. Our focus is now fully on building the new Nokian Tyres, and we are excited about our new direction”, said Jukka Moisio, president and CEO of Nokian Tyres.

However, questions will be raised about the price that Nokian has accepted for its Russian operations, what it will do with the Nokian moulds and intellectual property that are currently on-site in Russia. Even more importantly, Nokian still has to fill the estimated 3 million passenger car tyre production gap left by the Russian exit.