Transport

Hyundai Motor to Sell Russian Plant at $219 Million Loss

 

South Korean auto giant Hyundai will become the latest firm to sell its Russian assets at a nominal price, offloading its operations in St Petersburg for a meagre 7,000 roubles ($77.67).

In a regulatory filing, Hyundai said it would take a 287 billion won ($219.19 million) loss on selling the plant.

Operations at the plant have been suspended since March 2022.

 

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The exodus of foreign firms from Russia follows Moscow’s invasion of Ukraine and many automakers have sold their assets in the country for a nominal fee. Most have included buyback options that could one day allow them to return.

Hyundai said it was seeking to transfer its assets in the plant to Russia’s Art-Finance and include a buyback option. It plans to complete the deal by December 28.

A Hyundai Motor official said it would receive 10,000 roubles in total for the sale of all its Russian assets.

Hyundai and its affiliate Kia Corp were among the top three selling brands in Russia before the war. Since then global players have pulled out with Chinese brands moving in to replace them.

In May, Volkswagen sold its shares in its Russian assets to Art-Finance, which is supported by the autodealer group Avilon.

 

  • Reuters with additional editing by Vishakha Saxena

 

Also read:

Japan Shuts Down Lucrative Used Car Sales with Russia

Chinese Carmakers Grab Half of Russia’s Auto Market

Nissan Sells Russia Operation for 1 Euro Losing it $687m

Chinese, Russian Firms Agree Multiple Deals as Ties Deepen

South Korea’s Hyundai to Sell Vehicles on Amazon From 2024

Hyundai, Honda Partner EV Rivals to Take on Tesla Supercharger

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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