Ikea to sell Russian factories as it scales down operations

Ikea has announced that it will start the process of finding new ownership for all four of its factories in Russia, and will sell out its home furnishing inventory in the country, as Ikea enters a new phase to scale down business in Russia and Belarus.

On 3 March, Ikea and Ingka Group announced the pausing of Ikea operations in Russia and Belarus due to the war in Ukraine. However, the company said that the circumstances have not improved and it does not see that it is possible to resume operations, following global business and supply chain disruptions.

Consequently, the Ikea retail business in the country will remain stopped and the workforce will be reduced, meaning that many co-workers will be affected.

Additionally, the import and export of Ikea products to and from Russia and Belarus will remain stopped, and the two Inter Ikea-owned purchase and logistics offices in Moscow and Minsk will close permanently.

Ikea said that since pausing operations in Russia and Belarus, it has been a priority to provide support and security to co-workers, and the groups of companies have been able to guarantee six months’ salary for all co-workers, as well as core benefits.

Ikea said: “The war in Ukraine has already had a terrible impact on so many people’s lives. It is a human tragedy that is continuing to affect people and communities.

“This process is currently underway and all actions and decisions taken will be guided by the Ikea values and to support our people to the best of our ability.”