Finland-based tyre manufacturer Nokian Tyres on Saturday said that its tyre manufacturing in Russia will be subject to new EU sanctions and most likely banned from import into the EU.
The announcement came as Prime Minister Sanna Marin (SDP) said all western companies must leave Russia.
"We are currently studying the newly imposed sanctions in detail, and we continue to implement our contingency plans," Nokian Tyres said in a statement.
Last year, Nokian Tyres made about 80 percent of its passenger car tyres in Russia. Nokian Tyres produces its heavy tyres in Finland, which will therefore not be affected by sanctions.
Nokian Tyres said it will continue to increase production capacity at the company's plants in Nokia, Finland and Dayton in the US state of Tennessee.
Last month Nokian faced a public backlash after saying it was not planning to suspend operations in Russia, as many other international firms have done in response to the country's deadly onslaught and invasion of Ukraine.