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The sanctions, announced on Saturday, ban the import of tyres
from Russia, Nokian said, and will affect the company's ability
to sell tyres both in Russia and in the EU, specifically in
Central Europe.
The sanctions will also prohibit the export of certain raw
materials from the EU to Russia and limit transportation from
and to Russia, the company added.
In 2021, Russia accounted for approximately a fifth of the
company's net sales, with approximately 80% of its passenger car
tyres produced in the country. Around half of the raw material
used to produce tyres in Russia came from outside the country,
Nokian Tyres said.
"Raw material availability and its logistics will have a
significant impact on the company's capability to continue
production in Russia," it said in a statement.
The company said it would expedite plans to invest in new
production capacity in Europe, while also boosting capacity at
its existing factories in Finland and the United States.
"The Heavy Tyres business of Nokian Tyres plc is not impacted by
the ban to import tyres from Russia to the EU, as all Nokian
Tyres' heavy tyres are produced in Finland," it said.
(Reporting by Boleslaw Lasocki in Gdansk and Anne Kauranen in
Helsinki; editing by Uttaresh.V, Kirsten Donovan)
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