Michelin, Nokian first tyre companies to quit Russia, 28 June 2022

Michelin 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 and Germany's Continental AG, said it had become impossible to resume output owing to supply chain problems related to the sanctions against Moscow...

"It is technically impossible to resume production, due in particular to supply issues, amid a context of general uncertainty," said Michelin, which makes tyres for cars, aircraft and trucks.

Later in the day, Nokian announced plans for a "controlled exit" from Russia, home to its largest production plant...The company said it would evaluate different options and incur impairments of about 300 million euro in the second quarter. It didn't give further details. It has over 1,600 employees there.

The tyre industry has been hit hard by Western sanctions on Russia, which have cut off supplies of critical raw materials and shuttered factories that supply customers outside Russia...

Michelin Russia employs approximately 1,000 people, including 750 at the Davydovo plant...