IKEA to sell all four Russian factories

The Swedish company IKEA decided to get rid of its production assets in Russia. The company will sell the four factories it owns, located in Leningrad, Kirov and Novgorod regions. The IKEA press service shared the news with the outlet RBC.

“In the last four months, the situation with the business processes and supply chains has worsened everywhere in the world. Thus, we don’t see a way to resume sales in the near future. As a result, Inter IKEA holding and INGKA holding have decided to reduce the scope of business conducted in Russia. This is a difficult decision, but we believe it is necessary.

the company said in a statement.

They didn’t specify how many positions will be cut.

The press service also added that the MEGA shopping centres, which belong to IKEA, will continue to stay open in Russia. RIA Novosti, Russian state news agency, reports, citing the company, that IKEA will organise a sale for the items stored in their Russian warehouses.

IKEA temporarily closed its Russian stores on 4 March. On the last day of the stores being open, people queued for hours to have a chance to buy IKEA products.