In February 2022, Nokian Tyres plc was confronted with a business dilemma immediately after Russia’s attack on Ukraine. The company had invested heavily in a state-of-the-art factory near Saint Petersburg, Russia in 2005, where it was manufacturing over 80 per cent of its passenger car tires. Facing pressure from various stakeholders in the aftermath of the 2022 attack, Nokian Tyres plc was forced to re-evaluate its operations in Russia. Should the company remain in Russia or exit the country entirely? What would be the implications of taking either course of action? If it chose to exit Russia, how would it replace the lost production capacity?
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