Hyundai finalizes its exit from Russia as a company buys its two car factories

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Hyundai announced on Friday that it had signed a deal to sell its two Russian plants, making the South Korean company the latest global automaker to leave Russia since the start of the Ukraine war.

The Russian buyer, Art-Finance, said it had completed the acquisition of Hyundai’s St. Petersburg plants on January 24 and had obtained approval from the Federal Antimonopoly Service and Russia.

Most European, Japanese and South Korean automakers suspended production and left the Russian market after Moscow sent troops into Ukraine in February 2022, promoting in exchange for a small payment, as Russia made fundraising difficult.

Hyundai Motor said in December it planned to sell its Russian assets for 10,000 roubles ($111.69), taking a 287 billion won ($214.7 million) loss. Operations at its main plant were suspended in March 2022.

On Friday, Hyundai Motor showed it had signed a deal to sell its production facilities in Russia, without naming Art-Finance, with whom it had said in the past it was in negotiations.

Art-Finance said Hyundai’s assets are now part of its AGR group. The assets “include two production sites of a company in St. Petersburg: a factory in the Kamenka industrial zone and a factory in the Shuchary industrial zone. “

The second plant owned by General Motors before Hyundai bought it in 2020. The two plants have a combined annual capacity of approximately 300,000 vehicles.

Art-Finance is owned by Andrei Pavlovich, who acquired Volkswagen’s Russian assets in May 2023. Volkswagen’s plant was renamed AGR Automotive. Art-Finance said Hyundai’s plant will change its name once all registration procedures are completed.

Hyundai announced in December that it plans to continue offering after-sales services for existing cars taking into account the local situation in Russia.

Chinese carmakers have been plugging the gaps left in Russia by their departing Western competitors, but Chinese car sales appear to have peaked at more than 56% of the market as Russia’s domestic production has slightly recovered.

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