Michelin sells Russian division, exits country amid war
Michelin has operated in Russia since 1997
French tire manufacturer Michelin has sold off its remaining assets in Russia and abandoned the country's market.
Michelin is selling its Russian branches to Power International Tires LLC. The tire company announced its exit from the Russian market on Friday.
"After suspending its industrial activities in Russia on March 15, 2022, following the start of the conflict in the Ukraine, Michelin is today announcing the signature of an agreement with Power International Tires LLC for the purchase of its two local companies, Michelin Russia Tyre Manufacturing Company (MRTMC) LLC and Camso CIS LLC," Michelin announced in a statement.
Michelin claims the decision to sell to Power International Tires was motivated by a desire to save employees' jobs despite the cease of business.
RUSSIA HIDES ITS ECONOMIC STATUS FROM THE WORLD DURING UKRAINE WAR, JOURNALIST FINDS
In front of the Michelin plant in Hallstadt, a banner with the company logo can be seen on a fence. (Nicolas Armer/picture alliance via Getty Images / Getty Images)
"Approved by the competent local authorities, this agreement will allow for saving 250 jobs, mainly based in Davydovo," Michelin said. "The option to pass the activity on to local management was not possible due to major difficulties preventing these activities from being rendered autonomous."
RUSSIA LOOKS TO CUT GAS SUPPLIES TO FINLAND AMID NATO BID
The French tire company has been in Russia since 1997.
Michelin logo seen at Circuit Ricardo Tormo. (Xisco Navarro Pardo/SOPA Images/LightRocket via Getty Images / Getty Images)
The company added, "Aware of the fact that not all the staff could be taken on by Power International Tires, Michelin allowed those who wished to leave the Company under good conditions to do so."
The ongoing invasion of Ukraine has damaged Russia's international economy, spooking foreign countries from conducting business there.
UKRAINIAN NUCLEAR PLANT IN RUSSIA-OCCUPIED REGION CUT OFF FROM EXTERNAL POWER SUPPLY
A Michelin brand tire. (iStock / iStock)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Federal Tax Service has stopped publishing monthly figures on imports and exports. Additionally, the Central Bank has stopped putting out a monthly report on foreign trade.
Sberbank, the country's largest bank, has stopped publicizing who its top managers are on its website.