South Korean media reports Wednesday that automaker Hyundai Motors (OTC:HYMLY) is planning to exit Russia and sell its manufacturing plants.
South Korean TV network MBC reported that negotiations to sell Hyundai's factories in Russia are in the final stage, adding that the automaker has been waiting for a final approval from the Russian government.
"It is true that there are ongoing discussions regarding the sale, but nothing has been decided," Hyundai Motor said, according to the TV network.
Many factories in Russia, including Hyundai, have suspended production and furloughed workers due to shortages of high-tech equipment because of sanctions and a departure of Western manufacturers since Moscow invaded Ukraine last year.
Along with Renault (EPA:RENA), Hyundai and its affiliate Kia were among the top three selling brands in Russia before the war. Now as global players have pulled out, Chinese brands are replacing them in Russia's war economy.