Hyundai’s $97 Fire Sale in Russia Leaves No Way Back
South Korean automaker Hyundai is unlikely to reclaim its former manufacturing plant in Russia.
The Gaze informs about it, referring to Reuters.
Hyundai, once the largest foreign carmaker in Russia alongside its subsidiary Kia, suspended operations at its St. Petersburg facility in March 2022, shortly after Moscow launched its full-scale invasion of Ukraine. The shutdown followed sweeping Western sanctions, supply-chain disruptions, and mounting payment restrictions.
In 2024, Hyundai sold the plant to Russia’s AGR Automotive Group for a symbolic price of 140,000 won, roughly $97, while retaining the right to buy it back within two years. That option expires in January.
“At this stage, there are no conditions under which the company could repurchase the asset,” one source familiar with Hyundai’s internal deliberations told Reuters, pointing to the continued Russian-Ukrainian war and the persistence of sanctions as key obstacles.
Hyundai has not formally ruled out a buyback, saying only that no final decision has been made. It remains unclear whether missing the January deadline would permanently void the option or whether negotiations for an extension are possible. The company booked a loss of 287 billion won ($215 million) following the sale.
Hyundai is among several automakers that opted to sell assets for nominal sums while preserving buyback clauses in hopes of a future return. However, many such factories are now producing Chinese vehicles under Russian brands. Hyundai’s former plant is currently assembling cars under the Solaris nameplate, once a flagship Hyundai model in Russia.
As The Gaze previously reported, the Board of Eurimages, the European Union's film support fund, decided to strongly recommend that producers receiving its financial support refrain from any commercial exploitation of films in the Russian Federation.
For further analysis, watch the video on The Gaze: Business Is Leaving Russia. Putin's Plans Are Falling Apart