"Hyundai Motor Unlikely to Repurchase Russian Plant for Now"

"Buyback Only Possible After the War Ends"

It appears that Hyundai Motor Company is currently facing difficulties in repurchasing its local plant in Russia after having withdrawn from the Russian market.

Hyundai Motor Company's Saint Petersburg plant in Russia, sold in December 2023. Photo by Yonhap News Agency

According to local media reports on the 29th (local time), a source familiar with internal discussions at Hyundai Motor Company stated regarding the local production plant that was sold to a Russian company, "Repurchasing is not a feasible option at this time."

Previously, Hyundai Motor Company entered the Russian market by completing its Saint Petersburg plant in 2010. However, following Russia's invasion of Ukraine and the subsequent Western sanctions, the company faced difficulties in securing parts, leading to the suspension of plant operations from March of that year. In December 2023, Hyundai Motor Company sold 100% of its Russian stake, including the Saint Petersburg plant, to the Russian company Art Finance.

Subsequently, AGR Automotive Group, a subsidiary of Art Finance, continued to produce vehicles at the plant acquired from Hyundai Motor Company, maintaining the same brands such as 'Solaris' that Hyundai Motor Company had previously manufactured and sold.

Although the contract terms were not disclosed, it is known that a buyback clause was included, allowing Hyundai Motor Company to repurchase the plant within two years.

However, the source mentioned that the war in Ukraine is still ongoing and indicated that, regarding the buyback possibility, "The war must end first."

Although peace negotiations are being pursued under the leadership of the Donald Trump administration in the United States, Western sanctions against Russia remain in place.