IKEA to 'scale down' operations in Russia, Belarus

By Gokhan Ergocun

ISTANBUL (AA) - Swedish furniture giant IKEA on Wednesday said it would further "scale down" its business in Russia and Belarus because of the war in Ukraine.

Along with several Western companies, the group announced in early March that it was suspending its Russian and Belarusian activities, affecting nearly 15,000 employees.

"The war in Ukraine has already had a terrible impact on so many people’s lives. It is a human tragedy that is continuing to affect people and communities," the company said in a statement.

"Unfortunately the circumstances have not improved and the devastating war continues," the retailer said. "Businesses and supply chains across the world have been heavily impacted and we do not see that it is possible to resume operations any time soon."

The group said its retail business would remain stopped, the workforce will be reduced, and it will seek new owners for its four factories in Russia.

It said imports and exports of products to and from Russia and Belarus will also remain stopped, and that the purchase and logistics offices in Moscow and Minsk will close permanently.

"This process is currently underway and all actions and decisions taken will be guided by the IKEA values and to support our people to the best of our ability," the statement added.

IKEA was founded by Swedish entrepreneur Ingvar Kamprad in 1943.​​​​​​​