Hyundai follows Volkswagen, exits Russian market at heavy loss amid Ukraine war
The onset of the war in Ukraine prompted many manufacturers to halt their operations in the aggressor's territory. This decision was influenced not just by ideology but also by the sanctions imposed on Russia by the West. As such, conducting business in the east turned out to be extremely challenging or, in some cases, impossible.
1:04 PM EST, December 20, 2023
In response to these challenges, Volkswagen sold its plants in Kaluga to the Russian company Art-Finance in May 2023. Now, Hyundai has plans to follow a similar path. The company from South Korea announced its intention to transfer shares for a symbolic sum of 7,000 rubles, which roughly equates to 4 dollars.
The manufacturer points out that it will incur a loss of 287 billion won (around 220 million dollars) from this whole venture. This figure includes not only the estimated value of the Petersburg factory but also the loss due to the factory's non-functioning over the past few months.
The cost of withdrawing from the local market must also be factored in, particularly because prior to the onset of the war, Hyundai, along with its sister brand Kia, were among the top three best-selling brands in Russia.
