Nissan is the latest major company to exit the Russian market.
The decision comes more than six months after Russia invaded Ukraine.
The Japanese automaker is selling its Russian business to a state-owned operation for less than $1, according to CNBC. Nissan reports it will take a loss of $687 million for exiting Russia.
However, the company says the agreement would allow Nissan to buy back the entity and its operations within the next six years.
"While we cannot continue operating in the market, we have found the best possible solution to support our people,” said Nissan President and CEO Makoto Uchida.
Under the agreement, Nissan says its employees have received employment protection for a full year.
CNBC reports that Nissan stopped production at its St. Petersberg plant in March because of disruptions to the supply chain.