Why Big Players Like Hyundai Are Saying Good Bye To Russia?

As Russia attacked Ukraine, the world condemned Russian President Vladimir Putin’s aggressive actions. Citizens in Russia and throughout the world, as well as governments and corporations from other nations, have all expressed their displeasure with the Russian authorities’ conduct. 

Why is Hyundai planning to leave Russia?

According to sources, Hyundai Motor Co of South Korea wants to leave Russia and sell its production units to a Kazakh business. Negotiations to sell Hyundai’s plants in Russia are nearing completion, and the carmaker is awaiting final permission from the Russian government. According to Hyundai Motor, there are ongoing conversations about the sale, but nothing has been agreed. 

Last year, Hyundai Motor shut down its Russian operation. However, the manufacturer stated in March that it was considering “various options” for its Russian unit. In addition, Hyundai Motors recently stated that it was considering several possibilities for the future of its operations in Russia but that no decision had been taken as of yet.

Many Russian factories have halted production and laid off workers as a result of high-tech equipment shortages caused by sanctions and an exodus of Western manufacturers since Moscow invaded Ukraine last year. Hyundai Motor and its partner Kia Corp are among the world’s top ten automakers by sales, producing over 200,000 vehicles per year in Russia, accounting for approximately 4% of its total production capacity.

Here are other examples where Russia is being debarred from its participation.

The Russian government is effectively barred from participating in international financial markets. Moreover, due to the exclusion of major Russian banks from the SWIFT payment system, their clients may no longer receive cash to export products and services or pay for imports.

Apple Inc. has discontinued sales in all of its official Russian online storefronts. In addition, Apple Pay is no longer available. Google Pay and Samsung Pay are also no longer available in Russia, and PayPal has stopped Russian bank card transactions.

Throughout Europe, YouTube has blocked Russian state-run media channels RT and Sputnik.

Audi, Volvo, Jaguar, Land Rover, BMW, Mercedes, Citroen, GM, Ford, and Skoda have all exited the Russian vehicle market.

Thirty-two nations, including the United States, Canada, the United Kingdom, and the European Union, have blocked their airspace to Russian aircraft, including private jets owned by Russian oligarchs.  

Intel and AMD, the world’s two largest chip makers, have quit supplying Russia. 

Nike has chosen to cease sending items to Russia and has closed its Russian online outlets. 

A little bit about Hyundai that is on the verge of saying Bye-Bye to Russia.

Since the release of its Pony, developed with its proprietary technology, Hyundai Motor Company has been a forerunner in Korea’s automobile industry. Hyundai Motor Company has become a recognised global automotive manufacturer, with branded vehicles exported to over 200 countries. It has manufacturing facilities all throughout the world. It is expanding the automobile market by mass-producing hydrogen-powered vehicles for the first time in the world and launching GENESIS, a premium brand while driving the future mobility industry forward with its leadership in autonomous driving and connectivity technologies. It aims to achieve “Progress for Humanity” by finding better solutions for humanity through technical innovation.

The market capitalisation of Hyundai.

Hyundai has a market capitalisation of $35.78 billion as of May 2023. According to the statistics, this places Hyundai as the 487th most valuable business in the world by market capitalisation. Market capitalisation is the total market value of a publicly traded business’s outstanding shares and is widely used to determine the value of a firm.

Conclusion.

The combination of diminishing oil income, a weakening Russian currency, limitations on borrowing from foreign banks, and anxious Russian citizens have already contributed to a financial drawback this year that will be dangerous to compensate for to maintain a viable economy. Furthermore, the departure of great tech and auto titans from Russian lands may be detrimental to the Russian economy. Russia appears to be paying the price for its actions!

Proofread & Published By Naveenika Chauhan