Michelin is suspending its industrial activity in Russia and exports to the country due to supply difficulties following Moscow's invasion of Ukraine.
In 2004, Michelin became the first international tire company to open its own production in Russia.
The company's sales in the country currently represent 2 percent of the group's total and 1 percent of its global passenger car tire production, Michelin said in a statement.
Michelin's only plant in Russia, Davydovo, repairs truck tires and produces up to 2 million car tires per year, mainly for the Russian market and some northern European countries.
"The plant was already working at a very low level since several days. There is a lot of supply difficulties - which means we have disruption of financial flows, and there's a problem of currency instability," the company's spokesperson told Reuters.
Michelin was looking for alternative supply sources in Asia and the Middle East, the spokesperson said, adding the group would continue to pay the wages of the more than 1,000 people it employs in Russia, including 750 at the Davydovo plant.
It had stopped sales of plane tires and mining tires following U.S. sanctions, before halting exports completely on Tuesday.
