Core Viewpoint - Hyundai is unable to proceed with the buyback of its former production plant in Russia due to the ongoing war in Ukraine, with the contractual option set to expire in January 2026 [1][3]. Group 1: Buyback Situation - The option for Hyundai to repurchase the St Petersburg plant, sold for Won140,000 ($97 million) in 2024, is contingent on the resolution of the conflict in Ukraine [1][2]. - The sale agreement includes a two-year clause allowing Hyundai to buy back 100% of the facility, which is set to lapse in January 2026 [2][4]. - There is uncertainty regarding whether failing to meet the January deadline would permanently cancel the buyback right or if an extension could be negotiated [4]. Group 2: Production and Market Impact - The St Petersburg plant was one of the largest car factories in Russia owned by a foreign company, with an annual production capacity exceeding 200,000 vehicles for Hyundai and Kia [4]. - In 2019, Hyundai and Kia together accounted for approximately 23% of new car sales in Russia, delivering over 400,000 vehicles, with about half manufactured locally [5]. Group 3: Related Developments - Hyundai Mobis, the main parts supplier for Hyundai Motor Group, is expanding its R&D operations in India to cater to increasing global demand, establishing a new facility in Bengaluru [6].

By Hyunjoo Jin, Heejin Kim and Gleb Stolyarov SEOUL/MOSCOW, Dec 29 (Reuters) - South Korean automaker Hyundai is not in a position to repurchase its former manufacturing plant in Russia due to the continuing war in Ukraine, a source familiar with the matter told Reuters, as a ​buyback option appears set to expire next month. Along with its affiliate Kia, Hyundai was once the biggest foreign carmaker in Russia. But it sold ‌its plant in St. Petersburg in 2024. Operations at the facility had been suspende ...