Ikea set to liquidate Russian unit as Ukraine occupation continues

Swedish furniture giant IKEA has decided to liquidate its Russian unit, IKEA Dom Limited Liability Company, further reducing its operations after more than a decade of presence in the country, a company filing revealed on Tuesday.

Dozens of mainstream brands have suspended operations in Russia after Moscow sent tens of thousands of troops in Ukraine on February 24with H&M, IKEA and Nike among the companies to have announced permanent exit plans.

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IKEA, the world’s biggest furniture brand, closed its stores in March and said it would sell factories, close offices and cut its 15,000 employees in Russia.

IKEA joins a long list of other international companies leaving Russia. Russian IKEA stores, like the one pictured here in Moscow on July 5, 2022, closed in March shortly after Russia invaded Ukraine. (REUTERS/Evgenia Novozhenina/Reuters Photos)

The Ingka Group, owner of IKEA stores and one of the world’s largest shopping center owners, has, however, kept its “Mega” shopping centers open in Russia.

On Monday, IKEA closed its last reopened online sales in July.

According to the file published Tuesday in the Spark database of Russian companies of the Interfax news agency, Ingka Holding Europe BV has decided to liquidate IKEA Dom of which it is the sole owner. IKEA Dom was established in July 2006.

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In June, the Ingka Group declared that it was ready to return to Russia one day, but the conditions were not right at the moment. Ingka Group did not immediately respond to a request for comment from Reuters on Tuesday.

Michael A. Bynum