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 Tire 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.
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“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.”
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The French tire company has been in Russia since 1997.
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.
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The Federal Tax Service has stopped publishing monthly figures on imports and exports. plus, 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.