16 Jun 2022 18:38

IKEA not selling Russian retail business, could return if supply chains recover - ministry

ST. PETERSBURG. June 16 (Interfax) - IKEA could return to the Russian market if supply chains are restored, the company has such plans, Deputy Russian Industry and Trade Minister Viktor Yevtukhov told reporters on the on the sidelines of the St. Petersburg International Economic Forum.

"IKEA is only selling its factories, not the stores themselves, because they have plans to resume business in Russia if the opportunity arises to ship goods in from factories in other countries and restock," he said.

Yevtukhov said IKEA's decision to sell the factories was logical as they should not idle. He said IKEA would not have difficulty finding buyers: "They have good, hi-tech factories and I'm sure there will be quite a few interested parties."

IKEA said on June 15 that it was scaling its business in Russia down, selling its four factories in the country, with retail remaining on hold.

"The IKEA Retail business will remain stopped, and the workforce will be reduced, meaning that many co-workers will be affected. In order to support the scaling down process, Ingka Group plans to sell out its home furnishing inventory in Russia," it said.

"The Inter IKEA owned Industry business in Russia will reduce the workforce and start the process of finding new ownership for all four factories," it said.

The MEGA shopping centers will remain open.

IKEA paused operations in Russia on March 4.

IKEA currently has 14 stores in the Mega shopping centers in Russia and several IKEA City stores and several design studios. The company, according to its website, has four factories in Russia: in Yesipovo in the Moscow region, Tikhvin in the Leningrad region, in Veliky Novgorod and in Krasnaya Polyana in the Kirov region.