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16 Feb, 2023 13:32

Russia approves sale of IKEA factories – official

The facilities will be acquired by two local buyers, the deputy trade minister has said
Russia approves sale of IKEA factories – official

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

The three factories will be acquired by Russian kitchen worktop manufacturer Slotex and lumber producer Luzales, according to the official. The facilities will continue to operate and the goods produced will be sold by domestic retail outlets.

“It is important for us that production facilities work and are developed, and that jobs are preserved,” Yevtukhov told the media outlet. “The new owners, if necessary, can count on all possible measures of state support,” he said.

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

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

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 reduce its 15,000-strong workforce in Russia. It reopened for a brief online fire sale last summer.

For more stories on economy & finance visit RT's business section

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