Hyundai Motor to take $219M hit on sale of Russian plant

SEOUL, Dec 19, 2023, Reuters. South Korea’s Hyundai Motor (005380.KS) plans to sell its plant in Russia for a nominal 7,000 roubles ($77.67), a company official said on Tuesday, making it the latest global automaker to sell Russian assets since the outbreak of the special operation in Ukraine, Reuters reported.

Hyundai Motor, in a regulatory filing, said it would take a 287 billion won ($219.19 million) loss on selling the plant, in which operations have been suspended since March 2022.

The company said it was seeking to transfer its assets in the plant in St. Petersburg to Russia’s Art-Finance and include a buyback option, adding that it plans to complete the deal by Dec. 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 (000270.KS) were among the top three selling brands in Russia before the special operation. Since then global players have pulled out with Chinese brands moving in to replace them.

Hyundai Motor is following other major automakers that have sold their assets in Russia for a nominal fee and included buyback options that could one day allow them to return.

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