Russia approves sale of IKEA factories – officially

Russia approves sale of IKEA factories – officially

The facilities will be acquired by two local buyers, the deputy trade minister has said

A Russian government commission has approved the sale of Swedish furniture maker IKEA’s factories in Russia to two local buyers, Deputy Industry and Trade Minister Viktor Jevtuhov told Izvestia newspaper on Thursday.

The three factories will be acquired by Russian kitchen counter maker Slotex and lumber producer Luzales, according to the official. The facilities will continue to operate and the goods produced will be sold by Russian stores.

“It is important to us that the production facilities function and develop and that jobs are preserved.” Yevtukhov told the media. “If necessary, the new owners can count on all possible measures for state support,” he said.

Meanwhile, brand owner Inter IKEA Group was quoted by Reuters as saying the sale process is subject to a mandatory approval process. “This process is between the authorities and applicant companies. We have agreed with the potential buyers not to share any details with respect to them and the integrity of the sale process.” the company stated.

Russia was IKEA’s tenth largest market in the year to August 2021. For the 12-month period, sales amounted to $1.8 billion, or 4% of the company’s total retail sales.

READ MORE: The number of foreign companies conducting “business-as-usual” in Russia revealed

In March, the furniture maker joined a number of international companies in halting business in Russia due to Ukraine-related sanctions. The company said it would sell factories, close offices and cut its 15,000 employees in Russia. It reopened for a brief fire sale online last summer.

For more stories about economics and finance visit RT’s business section





Related Posts:

Ads Block Detector Powered by

Ads Blocker Detected!!!

Hi there! We have noticed that you are using an ad blocker. When you use an ad blocker, we will detect it and display this message. We understand that you want to reduce the annoyance of ads, but we also want you to know that ads are our main source of revenue to keep our website running. If you are willing to disable your ad blocker or whitelist our website, we can continue to provide high-quality content and services. In addition, you can enjoy a better browsing experience as the ads will display more relevant content based on your interests. Thank you for your understanding and support!