Stock Markets February 1, 2026

Hyundai Declines Russian Plant Buyback Option as Sale Option Expires

With operations suspended since March 2022, Hyundai says warranty and customer support will continue despite letting repurchase window lapse

By Avery Klein
Hyundai Declines Russian Plant Buyback Option as Sale Option Expires

Hyundai Motor confirmed it did not exercise the contractual option to repurchase its former Russian manufacturing facility, a buyback window that expired in January after the plant had been sold in 2024. The factory has been idle since March 2022 following the onset of severe supply and payments disruptions related to the conflict in Ukraine. Hyundai says it will keep providing warranty repairs and customer care for vehicles previously sold there.

Key Points

  • Hyundai and its affiliate Kia were once the biggest foreign carmakers in Russia; the factory has been suspended since March 2022.
  • The plant was sold in 2024 to a Russian company at a reduced price with a time-limited option to repurchase; that buyback option expired in January.
  • Hyundai will continue to offer warranty repairs and customer care services for vehicles it previously sold.

SEOUL, Feb 2 - Hyundai Motor said on Monday that it did not activate the option to buy back its former production plant in Russia, allowing the contractual repurchase window to lapse in January. The company and its affiliate Kia were once the largest foreign automakers operating in Russia, but operations at the site have been suspended since March 2022.

The suspension followed a wave of sanctions and other market reactions triggered by Moscow's invasion of Ukraine, which disrupted supply chains and payment flows. In 2024, Hyundai sold the Russian factory to a local firm at a reduced price and included an option to repurchase the facility within a set timeframe, reflecting a contingent plan to return if conditions permitted. That option has now expired.

In a statement, Hyundai reiterated that it will continue to provide warranty repairs and customer care services for vehicles it previously sold, and said it remains committed to maintaining those services going forward. The company did not announce any further actions related to its past operations in Russia.

The decision not to exercise the buyback clause formalizes Hyundai's current stance on its former Russian manufacturing foothold. The company has maintained after-sales support for existing customers despite the suspension of plant operations and the sale executed in 2024.

Information in this report is limited to details Hyundai released regarding the expired buyback option, the 2024 sale of the plant at a discounted price, the suspension of operations since March 2022, and the company's ongoing provision of warranty and customer care services for previously sold vehicles.


Summary

Hyundai allowed a contractual option to repurchase its Russian plant to expire in January after selling the facility in 2024 and suspending operations since March 2022. The automaker says it will continue warranty and customer support for vehicles sold earlier.

  • Key points
  • Hyundai and Kia were once the largest foreign carmakers in Russia; the plant has been idle since March 2022.
  • In 2024 Hyundai sold the plant to a Russian company at a bargain price and secured a fixed-time repurchase option that expired in January.
  • Hyundai will continue to provide warranty repairs and customer care services for previously sold vehicles.

Risks

  • Continuing suspension of the Russian plant - impacts automotive manufacturing capacity and regional production planning.
  • Disruptions to supply chains and payment flows tied to the March 2022 sanctions and market reactions - affects automotive and related supplier sectors.
  • Uncertainty over long-term market access in Russia given the expired repurchase option - relevant to firms considering operations or investments in the region.

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