"Michelin Tire Also Plans Withdrawal from Russia... Expected to Exit Russian Market by Year-End"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Following Russia's invasion of Ukraine, Western companies have been withdrawing from the Russian market one after another, and the French automobile tire manufacturer Michelin is reportedly planning to transfer its assets in Russia to local management and withdraw from the market.

According to TASS news agency on the 28th (local time), Michelin Russia's public relations office told TASS, "The Michelin Group has begun planning the (asset transfer)" and "the transfer process will be completed by the end of this year." Michelin Russia added that it will hand over its Russian branch and organization to local management by the end of the year.

Michelin's public relations office emphasized, "After withdrawal, the operation of the organization in Russia will be conducted completely independently from Michelin." Michelin, which suspended its business activities in Russia since March, previously stated, "Due to overall uncertainty and supply disruption issues, production cannot continue." It is known that about 1,000 employees work in Michelin Russia's organization.

Meanwhile, following Russia's invasion of Ukraine, Western companies have been continuing their withdrawal march from the Russian market. Earlier, McDonald's, Starbucks, and Renault announced their withdrawal, and companies such as ExxonMobil, Shell, and British American Tobacco (BAT) also declared their decision to exit the Russian market.