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Hyundai Sold Its Russian Factory for $97—Now It Can’t Get It Back
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South Korean automaker Hyundai is not in a position to repurchase its former manufacturing plant in Russia, despite holding a buyback option that expires in January, according to Reuters.
The facility, located in Saint Petersburg, had been sold to Russia’s AGR Automotive Group in 2023 for a symbolic sum of 140,000 won (approximately $97 USD), as reported by the outlet on December 29.
A Reuters source familiar with internal deliberations at Hyundai stated, “This is not a situation where we can buy back the shares,” indicating that no immediate conditions allow the company to exercise its repurchase option.
While Hyundai has yet to reach a final decision, the source pointed to the continuing war in Ukraine and international sanctions as underlying challenges, although no specific legal or financial obstacles were disclosed.
In a written statement to Reuters, the company confirmed that “a final decision regarding the buyback has not been made.”
Hyundai suspended operations at the Saint Petersburg plant in March 2022, one month after Russia launched its full-scale invasion of Ukraine. The company finalized the sale in 2023, under an agreement that included a two-year window for reacquisition of the asset.
Together with its affiliate Kia, Hyundai was previously the largest foreign automaker in the Russian market, accounting for approximately 23% of sales in 2019. The group’s strategic withdrawal followed a broader exodus of international automakers from Russia in response to geopolitical instability.
It remains unclear whether Hyundai’s inaction will result in a permanent forfeiture of the buyback right or whether the company may seek to renegotiate the option’s extension.
The Hyundai case echoes a similar decision by Japan’s Mazda Motor, which in October declined to exercise its right to repurchase a 50% stake in its former joint venture with Sollers. Mazda thereby became the first major automaker to forfeit such an option, according to Reuters.
Other international manufacturers—including Renault, Ford, Nissan, and Mercedes-Benz—have retained buyback options on Russian assets, with expiration dates ranging from 2027 to 2029. Toyota and Volkswagen, by contrast, exited the Russian market without securing any future rights of return.
Earlier, Renault CEO Luca de Meo said the company retained a six-year buyback option after exiting Russia in 2022. Despite a €2.2 billion write-down, he noted, “We’re business people. When we see a business opportunity, we’ll try to grasp it.” Renault’s CFO later described the chances of exercising the option as “very low.”
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