"We have followed the situation with great sadness and we, together with the whole international community, unequivocally condemn the war that has caused unimaginable suffering to so many," said Jukka Moisio, CEO of Nokian Tyres.
Our short-term focus was on adapting to the fast-changing, highly uncertain operating environment and keeping control of our operations in Russia. The company produced about 80 per cent of its car tyres and generated 20 per cent of its revenue in Russia in 2021.
Moisio revealed that after a thorough evaluation of various options, the company decided to rebuild itself without a presence in Russia. He said that this was not an easy decision because over 1,600 dedicated employees in Russia whose expertise we highly value, as well as many long-standing customer and supplier relations in Russia have been built over the past 17 years.
Nokian Tyres will record a roughly 300 million euro asset impairment in the second quarter due to the depreciation of its assets in Russia, leaving it with more than 400 million euros worth of assets in Russia and Belarus in May.
The company has seen its share price sink by almost two-thirds since the beginning of the year because of the risks associated with its assets in Russia, according to Helsingin Sanomat.