Ikea to sell factories and offices in Russia as ‘devastating’ war rages on

Swedish company says operations will not resume ‘any time soon’

(AP)

Ikea has said it will sell its factories and close offices in Russia, in the latest boycott against Moscow since Vladimir Putin launched his Ukraine invasion.

The Swedish furniture company will also reduce its 15,000-strong staff as the retailer said it does not see any possibility to resume sales in the foreseeable future.

Ikea had temporarily closed stores in Russia in March, but the company has continues to pay employees and will do so until the end of August.

Ingka Group, which owns all IKEA stores in Russia, said: “Unfortunately, the circumstances have not improved, and the devastating war continues. Businesses and supply chains across the world have been heavily impacted and we do not see that it is possible to resume operations any time soon.”

However, Ingka is not closing its 14 malls in Russia, branded “MEGA”.

Ikea has said it will sell factories and close offices in Russia , in the latest boycott against Moscow (AP)

Since Russia launched its invasion of Ukraine, many global companies have paused operations in the country indefintely.

Others, like McDonald’s, have sold to local buyers allowing the restaurants to reopen under new ownership and branding.

Brand owner Inter IKEA, which is also in charge of supply, said it would start looking for new owners at its four factories and cut staff, but did not give further details.

“The import and export of IKEA goods in Russia and Belarus remains on hold,” IKEA said.

IKEA opened its first store in Russia in 2000 and now has 17 stores and 14 shopping centres under its business there, it said.

While the retail business remains paused, IKEA hinted that it may open the doors for Russians for one last time.

“To ensure necessary business processes, we are organising the sale of homeware goods that are in our warehouses to employees and customers. Dates will be announced soon,” IKEA said.

The company’s Russian representatives declined to expand on what this would entail.

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