Finance
Hyundai Motor did not exercise option to buy back Russian auto factory
Published by Global Banking and Finance Review
Posted on February 2, 2026
1 min readLast updated: February 2, 2026
Quick Summary
Hyundai Motor has decided against repurchasing its Russian auto plant, focusing instead on maintaining customer services amid the Ukraine conflict.
Hyundai Motor Declines Buyback Option for Russian Auto Plant
Hyundai's Manufacturing Decisions Amid Ongoing Conflict
SEOUL, Feb 2 (Reuters) - South Korean automaker Hyundai Motor did not exercise a buyback option for its former manufacturing plant in Russia, the company said on Monday, amid the continuing war in Ukraine.
Background on Hyundai's Russian Operations
Along with its affiliate Kia, Hyundai was once the biggest foreign carmaker in Russia.
Impact of Western Sanctions
Operations at the facility have been suspended since March 2022, a month after Moscow's invasion of its neighbour provoked a backlash of Western sanctions that disrupted supply chains and payments.
Future of Customer Services
In 2024, Hyundai, like many other automakers, sold its plant to a Russian company for a bargain price and agreed to an option to repurchase it within a fixed timeframe in the hope of one day returning. The buyback option expired in January.
"Hyundai Motor continues to provide warranty repairs and customer care services for previously sold vehicles, and remains committed to maintaining these services going forward," Hyundai said in a statement to Reuters.
(Reporting by Hyunjoo Jin; Editing by Himani Sarkar and Sonali Paul)
Key Takeaways
- •Hyundai did not exercise the buyback option for its Russian plant.
- •The plant was sold to a Russian company in 2024.
- •Operations were suspended due to Western sanctions.
- •Hyundai continues to provide customer services in Russia.
- •The buyback option expired in January.
Frequently Asked Questions about Hyundai Motor did not exercise option to buy back Russian auto factory
1What is a buyback option?
A buyback option is a provision that allows a company to repurchase its shares or assets at a predetermined price within a specified timeframe.
2What are Western sanctions?
Western sanctions are restrictive measures imposed by Western countries to influence or penalize a nation for its actions, often affecting trade, finance, and investments.
3What is a manufacturing plant?
A manufacturing plant is a facility where goods are produced using machinery, labor, and raw materials, often involving assembly lines and production processes.
4What is customer care service?
Customer care service refers to the support provided to customers before, during, and after purchasing products or services, ensuring satisfaction and addressing issues.
5What is warranty repair?
Warranty repair is a service provided by a manufacturer or seller to fix or replace defective products within a specified warranty period, at no cost to the customer.