Hyundai Won’t Buy Back Russian Plant Amid Ongoing War
South Korean automaker Hyundai has put the brakes on its plan to repurchase a former production facility in St Petersburg, Russia. The company can’t move forward with buying back the plant if the war in Ukraine continues.Key TakeawaysThe contractual option for Hyundai to buy back the asset expires in January 2026 and won't be extended due to ongoing conflict.Halted production at the St Petersburg plant since March 2022 after Moscow's invasion of Ukraine disrupted supply chains.Hyundai recorded a Won287bn impairment charge from disposing of the facility in 2024, which is equivalent to selling off an entire fleet of older Hyundai Elantras.The St Petersburg plant was one of Russia's largest car factories owned by foreign companies before operations were suspended. The factory had a capacity o...