Hyundai Russia buyback unlikely without war’s end

Dec 30, 2025, 08:28 am

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Hyundai vehicles are seen parked at a customs terminal outside St. Petersburg in June 2022, shortly after the automaker halted operations in Russia following the Ukraine war.

Hyundai Motor’s prospects for reacquiring its former Russian manufacturing plant appear virtually closed for now, with the company indicating that a return would only be possible after the end of the war in Ukraine.

According to Reuters, a source familiar with Hyundai Motor’s internal deliberations said on Dec. 29 that “this is not a situation in which we can buy back the stake,” adding that “the war would have to end first.”

Hyundai suspended operations at its St. Petersburg plant in March 2022, shortly after Russia’s invasion of Ukraine. In 2024, the company sold 100% of its Russian assets—including the plant—to AGR Automotive Group for a symbolic price of 140,000 won (about $97). The deal included a buyback option allowing Hyundai to repurchase the assets within two years, a deadline set to expire in January next year.

Reuters reported that Hyundai booked losses of roughly 287 billion won from its withdrawal from Russia. Ongoing Western sanctions have disrupted parts procurement and payment systems, making it effectively impossible for foreign automakers to operate plants normally in the country.

In a statement to Reuters, Hyundai said that no final decision has been made regarding the buyback option, while AGR Automotive Group declined to comment. Reuters noted that it remains unclear whether Hyundai could negotiate an extension of the deadline or whether missing it would mean permanently forfeiting its repurchase rights.

Before the war, Hyundai and Kia were the largest foreign automakers in Russia. In 2019, the two companies sold more than 400,000 vehicles, accounting for about 23% of the country’s new car market, with roughly half produced at the St. Petersburg facility. The plant had an annual production capacity of over 200,000 vehicles.

Russia’s auto market has since been reshaped by Chinese manufacturers. Reuters said Chinese brands accounted for nearly 1 million of the 1.57 million vehicles sold in Russia in 2024. The former Hyundai plant, however, is currently producing vehicles under the “Solaris” brand—a name previously associated with one of Hyundai’s best-selling models in Russia.

Reuters also noted that Mazda became the first automaker to lose its buyback rights after opting not to exercise its option in October. Other global carmakers, including Renault, Ford, Nissan and Mercedes-Benz, still hold buyback options set to expire between 2027 and 2029, while Toyota and Volkswagen sold their Russian assets without any repurchase rights.

Speculation about Hyundai’s potential return resurfaced recently after Russian media reported the re-registration of Hyundai trademarks in the country. Reuters, however, said that as long as the war continues and sanctions remain in place, a near-term reentry into the Russian market appears unlikely.

#Hyundai Motor #Russia factory #buyback option #Ukraine war #St. Petersburg plant