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].

Group 1 - Hyundai is unable to repurchase its former manufacturing plant in Russia due to the ongoing war in Ukraine, with the buyback option set to expire next month [1][3][5] - Hyundai and its affiliate Kia were once the largest foreign carmakers in Russia, having sold their St. Petersburg plant in 2024 after operations were suspended in March 2022 due to the invasion of Ukraine [2][6] - The sale of the plant to AGR Automotive Group was for a symbolic amount of 140,000 won ($97) and included a two-year buyback option, which is now nearing expiration [3][4] Group 2 - The ongoing conflict in Ukraine and Western sanctions against Russia have hindered Hyundai's ability to act on the buyback option, with uncertainty surrounding the potential for negotiating an extension [5][6] - Most foreign carmakers have exited the Russian market due to reputational risks and operational challenges, with Hyundai reporting a 287-billion-won loss from the sale of its Russian assets [6][7] - The plant that Hyundai sold is now producing vehicles under the Solaris brand, which was previously associated with Hyundai's own models for the Russian market [7]