By Essi Lehto

HELSINKI, (Reuters) – Finland’s Nokian Tyres still runs its Russian factory. As long as the production remains in Finnish hands, Russia will not be supported in war in Ukraine. CEO Jukka Moisio stated to Reuters during an interview.

In February, Russia attacked Ukraine, putting an end to the company’s record-breaking earnings and allowing it to survive.

The tyre manufacturer is now trying to balance between adhering to the sanctions and making tyres at Vsevolozhsk’s factory, which is three hours from the Finnish border. The factory made more than 80% Nokian passenger cars’ tyres prior to the war that caused production difficulties.

Nokian’s decision to keep in Russia has drawn criticism from both protestors outside the Finnish factory and Olga Dibrova from Ukraine, ambassador to Finland. In March, she called for the end of all Russian connections between Nokian and Russia.

Russia threatened to seize the factories of any company that claims it will shut down production.

Moisio stated that different types of legal problems (like talk of bankruptcy) can occur if the factory is not managed at a reasonable level. He added that the company would make sure its tires were safe as long as it remained under Nokian control.

Moisio stated that he attends emergency meetings nearly every day as the company creates scenarios to show how Russia might be impacted.

Moisio stated, “We’re preparing for anything,” even including nationalizing the plant.

Moisio explained that if that were to occur, I do not think that we can do anything but make sure that the company is still financially sound and has all the resources it requires to continue its work.

Although the EU sanctions have been lifted for a period of transition, the company claims that it is still allowed to export tyres made in Russia up until the middle of July. However, transportation costs are now more complicated and expensive.

Moisio mentioned that we lack key raw materials from all over the globe, including from Russia. He specifically pointed out rubber, textiles, and soot.

Joonas Corkiakoski, Inderes’ analyst for the U.S. told Reuters that all tyres will need to be made in Finland after July. But this won’t be enough to sustain the company’s growth rate at its factories before the war.

The company’s management and board are looking for new capacity to produce in Eastern Europe. Korkiakoski stated that it will take some time due to the Nokian’s experiences in setting up Dayton in the United States.

He said that Dayton will require around three to four years for reasonable production after the investment decision.