Hyundai Motor’s St. Petersburg Plant: Update on Share Sale to Art-Finance and Prospects for a Restart
The discussions surrounding Hyundai Motor’s St. Petersburg plant and the planned sale of its shares to the Russian firm Art-Finance are nearing a forthcoming conclusion. Denis Manturov, Deputy Prime Minister of the Russian Federation and head of the Ministry of Industry and Trade, provided the latest update on this transaction to RIA News, noting that the formal parameters of the deal are being finalized in the near term.
Manturov explained that the sale has already received approval from the government’s subcommittee responsible for monitoring foreign investments in Russia. The next steps involve the two parties clarifying the remaining details of the agreement, including provisions for a potential buyback option. Officials expect final decisions to be reached soon, with Art-Finance and its industrial partners actively examining options to restart automobile production at the St. Petersburg site at an earlier date if the deal progresses as hoped.
Beyond the transaction specifics, Manturov reaffirmed Hyundai Motor’s ongoing commitments. The company will continue to honor warranties and provide service maintenance for vehicles sold in the Russian market, regardless of the ownership structure of the manufacturing facility. This assurance underscores Hyundai’s long-standing responsibility to customers even amid organizational changes tied to the plant’s ownership transition.
The St. Petersburg facility has operated since 2010, contributing a meaningful manufacturing presence in Russia’s automotive sector. With a reported annual production capacity of up to 200,000 vehicles, the plant previously produced models such as the Hyundai Creta and Solaris, along with the Kia Rio and Rio X-Line. Production at the site was suspended in March 2022, amid broader industry disruptions and sanctions-related challenges that affected operations and supply chains across the region.
Earlier developments included Avilon’s decision not to proceed with the acquisition of the Russian Hyundai factory, a stance that shaped the broader timeline and modality of any potential transfer of ownership and restarted production scenarios. The current negotiations are positioned within this evolving context, aiming to align ownership, investment, and manufacturing plans with Russia’s regulatory framework and market conditions while considering the potential involvement of local and industrial partners to facilitate a restart if permitted.