The news came in as supporting a larger Western companies' boycott amid the invasion of the Russian army of Ukraine. The company is also expected to raise prices by around 12% in the 2022 fiscal year, up from 9% in 2021 due to an increase in raw material costs and supply chain disruptions caused by the COVID-19 pandemic.
Russia was IKEA’s tenth biggest market globally, with retail sales of around EUR 1.6 billion in 2021. The decision to pause operations in Russia will affect 15,000 employees but the company stated it will secure employment and income stability, as well as provide support to employees and their families.
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