Hyundai Motor has signed an agreement to sell its two plants in Russia, the South Korean group becoming the latest global automaker to exit the Russian market following Moscow’s invasion of Ukraine, Reuters reports.

Russian buyer Art-Finance said it completed the purchase of the Hyundai plant in St. Petersburg this week and received approval of the deal from the Russian government and the Federal Antimonopoly Service. Hyundai’s assets will be integrated into AGR Group, owned by Art-Finance.

The Russian company said that the assets “include two production units in St. Petersburg: a factory in the Kamianka industrial zone and a plant in the Shushary industrial zone.”

Also, Andriy Pavlovich acquired the capabilities of Volkswagen

The total annual capacity of the two plants is approximately 300,000 vehicles.

In December, Hyundai Motor announced plans to sell its Russian assets for 10,000 rubles ($111.69), revealing losses of 287 billion won ($214.7 million). In March 2022, the work of the main plant was suspended.

“Art-Finance” belongs to Andriy Pavlovich, who acquired the Russian assets of Volkswagen in May 2023.

Volkswagen was part of the first wave of foreign companies to announce they would leave the Russian market after the start of the invasion of Ukraine, announcing on March 3, 2022, that it would end production and sales of cars in the country led by Vladimir Putin. .

But as with other foreign companies, the sale process has been difficult, and Volkswagen has also faced several lawsuits filed by its former Russian partners seeking various claims from the German automaker.

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Most European, Japanese and South Korean automakers have suspended production and withdrawn from the Russian market following the February 2022 invasion.

The French group Renault sold a majority stake in the Russian automaker AvtoVAZ to the Russian state for just one ruble, with the possibility of redemption within six years. Similarly, Nissan sold its assets for one euro.

China takes advantage of the waste of Western companies

This month, the China Association of Automobile Manufacturers announced that Russia was the top destination for Chinese auto exports in 2023, receiving more than 841,000 vehicles in the first 11 months of the year, more than double that of number two Mexico.

Chinese automakers took advantage of the exit of Western companies after the Russian invasion of Ukraine. (Agerpress)