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Finland's Nokian Tyres sells Russian operations to Tatneft

FILE PHOTO: An employee sorts Nokian tyres at a tyre assembling centre and shop in Moscow

HELSINKI (Reuters) - Nokian Tyres has signed an agreement to sell its Russian operations to Russian oil producer Tatneft PJSC for 400 million euros ($398.7 million), the Finnish company said on Friday.

At the end of June, Nokian Tyres said it would initiate a controlled exit from the Russian market due to Russia's war in Ukraine.

The company, which used to make 80% of its passenger car tyres in Russia, has been operating in the country since 2005.

"The transaction is subject to approval by the relevant regulatory authorities in Russia and other conditions, which creates substantial uncertainties related to the timing, terms and conditions and the closing of the transaction," Nokian said in a statement.

Nokian Tyres had already recorded an impairment of 280.7 million euros and a write-down of 20 million euros of deferred tax assets in Russia in the second quarter.

It said its assets in Russia and Belarus, excluding tax and financial items, amounted to 590.4 million euros and its net assets, excluding net debt, amounted to 480.3 million at the end of the third quarter of 2022.

($1 = 1.0032 euros)

(Reporting by Anne Kauranen, editing by Terje Solsvik and Jane Merriman)