HELSINKI, (Reuters) – Finnish tire maker Nokian Tyres stated Monday that new EU sanctions against Russia would have a major impact on the company’s production.

Nokian announced that the sanctions will ban Russia’s import of tyres and would affect Nokian’s ability sell tyres in Russia as well as in the EU.

According to company statements, certain raw materials will be restricted from Russia’s EU exports and transportation restrictions from Russia.

Russia represented approximately half of the company’s net sales in 2021. The country also produced approximately 80% its passenger car tires. Nokian Tyres estimated that half of Russia’s raw materials were imported.

It stated in a statement that “raw material availability and logistics will have significant impacts on the company’s ability to continue production in Russia.”

According to the company, it will accelerate plans for new European production capacities and increase capacity at existing Finnish factories.

It stated that the ban on Russian imports of tyres to the EU did not affect the Heavy Tyres Business of Nokian Tyres plc, since all Nokian Tyres heavy tyres were made in Finland.