IKEA temporarily shuts down operations in Russia

Thursday 3 March 2022 15:14 CET | News

Sweden-based global furniture provider IKEA has announced it temporarily closes its stores in Russia and pauses all sourcing in Belarus and Russia.

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. 

Although the furniture company’s decision in Russia follows a Western trend we have seen starting of March 2022, IKEA is one of the first companies to impose similar actions to Belarus. 

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Keywords: Russia Ukraine War, ecommerce, IKEA, COVID-19, regulation, financial sanctions
Categories: Payments & Commerce
Companies: IKEA
Countries: Belarus, Russian Federation
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Payments & Commerce


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