Hyundai Motor Group says it will not exercise an option to buy back its plant in Russia, whose operations have been suspended since March 2022 due to the Russia-Ukraine war.

The group announced the decision Monday when speaking with KBS.

In December 2023, the automaker sold its entire stake in Hyundai Motor Manufacturing Rus, including the plant in Saint Petersburg, to Russian firm Art-Finance for ten-thousand rubles. 

In the sale, Hyundai had included an option to buy back the factory in two years’ time in consideration of its high local market share. 

The group apparently decided not to exercise the buyback option in favor of efforts to maintain its brand image by strengthening customer management rather than seeking to reenter Russia’s market, where geopolitical risks still remain.