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IKEA finally out of Russia Related articles

The Russian government has approved the sale of all IKEA factories in the country. The Swedish furniture giant decided to leave Russia last summer, but new Russian rules have caused significant delays. Two local buyers take over the furniture factories.

According to these rules, trade with Russia’s “hostile countries” must first be approved by a special government committee, which took a long time. These are countries that have imposed sanctions on Russia.

Follow developments in Ukraine here on our live blog

A woman walks past a closed IKEA store in Moscow. (EPA / Maxim Shipenkov)

Russia tests the purchase of foreign companies through this committee because expropriation is not seen as an option. According to Russia correspondent Joost Bosman, this is due to the bad experiences after the Russian revolution of 1917. ‘A lot of knowledge and skills left the country then. Also, it took foreign companies a long time to invest back in the country. This is still very sensitive in Russia.’

“It seemed like he wanted to come back again for a while.”

I waited a long time

According to Bosman, the deal was also delayed because IKEA had long doubted whether it wanted to leave Russia. In March, just weeks after the Russian invasion of Ukraine, the company suspended all operations in Russia.

IKEA has been waiting a long time with a final departure. “It seemed for a long time that he wanted to come back again. A possible return in the future is not yet excluded.’

According to Bosman, IKEA itself has had little say in sales, if the company still wants to make money from the departure from Russia. “The company may or may not accept a sale, but if it wants to get anything out of it, it will still have to accept the Russian demands.”

Author: George Simonides
Source: BNR

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