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Putin gave Kim a Russian Aurus limousine with parts from... South Korea!

Jul 1, 2024 13:13 273

Putin gave Kim a Russian Aurus limousine with parts from... South Korea!  - 1

Laughing and joking, Russian President Vladimir Putin and North Korean leader Kim Jong Un drove through Pyongyang last week in a Russian-made Aurus limousine to demonstrate their anti-Western alliance. The Aurus was a gift from the Russian president, who even sat behind the wheel of the limousine. But the paradox, as Roiners points out, is that the limousine, which is positioned as a "Russian car", is assembled from foreign parts, many of them South Korean.

When it was introduced in 2018, the luxury sedan was supposed to represent a luxury Russian car and reduce dependence on imported technology and goods. Subsequently, it turned out that this was not exactly the case. Customs records show the company that makes it uses millions of dollars worth of imported parts, many of which come to Russia from what Kim described as the "main enemy" of his country - South Korea.

Between 2018 and 2023, Russia imported at least $34 million worth of equipment and components to assemble the Aurus cars and motorcycles, according to customs reports reviewed by Reuters. Reuters does not have access to more recent data. The imports include nearly $15.5 million worth of body parts, sensors, programmable controllers, switches, welding equipment and other components imported from South Korea, China, India, Turkey, Italy and other EU countries.

Foreign supplies to the Aurus continue even after the full-scale Russian invasion of Ukraine. Almost $16 million worth of parts and equipment were imported, with $5 million worth of parts manufactured in South Korea. Reuters has not been able to determine exactly what South Korean parts ended up in the car given to Kim, but it certainly has some.

The Aurus sedan was developed by the Russian state research institute NAMA in partnership with Russian carmaker Sollers ( SVAV.MM ), but also with the engineering cooperation of Porsche. Aurus Motors and its CEO Andriy Pankov did not respond to a Reuters request for comment on the use of foreign parts, particularly from South Korea, in their cars.

The company started official production in Tatarstan, a Russian region about 1,000 km from Moscow, in 2021 - before that, the cars were produced on a small experimental scale at NAMI. Additional production will begin this year in St. Petersburg at the former Toyota plant.

Toyota is one of many foreign carmakers that have left the Russian market since the invasion of Ukraine, which Russia calls a "special military operation". The leak created a niche that was quickly occupied by Chinese manufacturers, quickly capturing more than half the market share and demonstrating Russia's limited domestic production capacity.

South Korean firms were among the Aurus' biggest suppliers, including industrial equipment maker Kyungki Industrial Co, body parts maker BYT CO LTD and battery supplier Enertech International Inc. Italian plastic parts manufacturer Industrie Ilpea Spa and Hong Kong company Rain Electronics have also become suppliers of the product.

A Kyungki Industrial Co representative confirmed that the company has supplied parts to Aurus LLC and continues to do so. The company is not concerned about possible sanctions, the official said, declining to provide further details. Rain Electronics could not be reached for comment. When a Reuters correspondent visited the address listed online as the company's Hong Kong office, there was no sign of Rain Electronics.

BYT CO LTD, Enertech International and Industrie Ilpea Spa did not respond to Reuters requests for comment. The Aurus Senat, styled after a vintage Soviet-era ZIL limousine, is the official presidential car of Russia used by Putin at his inaugurations in 2018 and 2024.

Putin has now given Kim, who is believed to be a passionate car enthusiast, two Aurus cars, first during Kim's visit to Russia in February and a slightly different model in North Korea in June. Prices for Aurus cars - four models, including an SUV and an armored version - start at 46.625 million rubles ($528,356). Among the clients is the President of Turkmenistan, Serdar Berdimuhamedov. According to the Russian analytical agency "Avtostat" in 2023 Aurus sold 107 cars in Russia.