As the Russian war in Ukraine continues to drag on, collateral damage persists, impacting land, people and the business community.
The latest corporate victim in this saga is multinational automaker, Hyundai, who announced this week that it will sell its plant in Russia for a tremendous loss.
The Hyundai factory in St. Petersberg, which suspended operations back in March of 2022, is believed to be worth some $219 million. Company officials said they will sell it to a Russian firm for 10,000 rubles – the equivalent of about $77 U.S. dollars.
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Reuters says that Hyundai is including a buyback option in the sales contract, verbiage that may enable Hyundai to return to Russia in the future.
The report adds that other foreign companies have included similar language in their deals as they’ve vacated their claim on assets in Russia.
Reuters says that Hyundai and partner brand Kia were among the top three selling auto brands in Russia before the start of the war.
Since then, as they and other global players have pulled out of the war-torn country, Chinese brands have come in to replace them.
The deal is expected to close before the end of this year.
