NOKIA, Finland—The European Union has expanded its sanctions on Russia as a result of its war against Ukraine, which in turn has pushed Nokian Tyres P.L.C. to expedite its plans to increase capacity at its plants in Dayton, Tenn., and Nokia, Finland.
On April 8, the EU announced its fifth package of restrictive measures against Russia, including the ban of cement, rubber products, wood, spirits, liquor and seafood, as well as an anti-circumvention measure against potash imports from Belarus.
The ban also includes imports of Russian coal, access to Russian and Belarusian freight road operators and entry of Russian-flagged vessels to the EU, as well as export of products to Russia, covering quantum computing, advanced semiconductors, sensitive machinery, transportation and chemicals.
These measures cover trade worth nearly $6 billion (€5.5 billion) and "will also help to close loopholes between Russia and Belarus," according to the European Commission.
In a statement issued on April 11, Nokian said the EU sanctions will have a "significant impact" on Nokian's ability to manufacture tires in Russia as well as sell tires in Russia and in the EU, "specifically in Central Europe."