Firm making car that Putin gifted to Kim uses South Korean parts, data shows

TBILISI — Laughing and joking, Russian President Vladimir Putin and North Korean leader Kim Jong-un cruised around Pyongyang last week in a Russian-made Aurus limousine to showcase their strengthened anti-Western alliance.

The luxury sedan was intended to epitomise Russia's domestic prowess and reduced dependence on imported technology and goods when unveiled in 2018.

But customs records show that the company that builds it uses millions of dollars in imported parts, many arriving in Russia from what Kim has described as his country's "primary foe", South Korea.

The imports point to Russia's ongoing reliance on Western technology, as it seeks to navigate Western attempts to cut it off from global supply chains as punishment for its invasion of Ukraine.

The two leaders took turns driving the armoured limousine during Putin's pomp-filled visit, his first in nearly a quarter of a century to North Korea, in a demonstration of the two nuclear powers' increasingly close ties.

Russia imported equipment and components worth at least US$34 million (S$46.1 million) between 2018 and 2023 for assembling Aurus cars and motorcycles, customs records seen by Reuters showed. Reuters does not have access to more recent data.

The imports included car body parts, sensors, programmable controllers, switches, welding equipment and other components worth almost US$15.5 million imported from South Korea. Parts were also imported from China, India, Turkey, Italy and other EU countries.

Foreign supplies for Aurus kept coming after Russia's full-scale invasion of Ukraine, with goods worth almost US$16 million, including US$5 million produced in South Korea, imported since February 2022, the records showed.

Reuters could not determine specifically which imported foreign parts ended up in the car gifted to Kim, and the imports were not in breach of sanctions — Aurus LLC was sanctioned by the US in February 2024.

The Aurus sedan was developed by Russian state-owned research institute Nami in partnership with Russian carmaker Sollers, which has since sold its stake.

Aurus Motors and its chief executive Andrey Pankov did not respond to Reuters' requests for comment on the use of foreign parts, including from South Korea, in its vehicles.

Growing production

The company launched official production in Russia's Tatarstan region, around 1,000km from Moscow, in 2021 — before then, it was made on a small, experimental scale at Nami. It will start additional production in St Petersburg later in 2024 at Toyota's former factory.

Toyota is one of many foreign carmakers to exit the Russian market since the invasion, which Russia calls a "special military operation".

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The exodus has left a gap that Chinese producers have been quick to fill, rapidly seizing more than half the market share and exposing Russia's limited domestic production capacity.

South Korean firms were among the largest suppliers to Aurus, including industrial equipment producer Kyungki Industrial, car body parts manufacturer BYT and batteries supplier Enertech International.

Italian plastic parts producer Industrie Ilpea Spa and Hong Kong company Rain Electronics also supplied goods.

An official at Kyungki Industrial confirmed that the company has supplied parts to Aurus and continues to do so. The company is not concerned about any potential sanctions, the official said, declining to give further details.

Rain Electronics could not be reached for comment. When a Reuters correspondent visited the address listed on the internet as the company's office in Hong Kong, there was no trace of Rain Electronics on the floor listed online or in the office building.

BYT, Enertech International and Industrie Ilpea Spa did not respond to Reuters' requests for comment.

The Aurus Senat, retro-styled after the Soviet-era ZIL limousine, is Russia's official presidential car and was used by Putin at his presidential inaugurations in 2018 and 2024.

Putin has now given Kim, believed to be a keen automobile fan, 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 — there are four models, including a sport utility vehicle and armoured version — start from 46.625 million roubles (S$728,000). Customers include Turkmenistan President Serdar Berdymukhamedov.

Aurus sold 107 cars in Russia in 2023, according to data from Russian analytical agency Autostat. Aurus does not disclose production numbers.

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