IKEA Temporarily Closes Stores in Russia Over Ukraine Invasion

2022-03-03

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The parent company of Swedish furniture maker IKEA announced Thursday it will temporarily close its stores in Russia and cease sourcing supplies from Russia and Belarus over the Russian invasion of Ukraine.

"The devastating war in Ukraine is a human tragedy, and our deepest empathy and concerns are with the millions of people impacted," brand owner Inter IKEA Holding and Ingka Group said in a joint statement.

"The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia," they said.

The move will impact about 15,000 workers and 17 retail outlets.

"The company groups will secure employment and income stability and provide support to them and their families in the region," IKEA said.

Fourteen Ingka Group malls in Russia will continue to operate "to ensure that the many people in Russia have access to their daily needs and essentials such as food, groceries and pharmacies," the company said in a statement.

IKEA has already said it will have to increase its prices by 12% on average due to inflation and supply chain problems, Reuters reported.

IKEA's move comes amid a wave of companies such as Boeing, Apple, Honda and many others announcing they will stop or limit activities in Russia because of the invasion.

Some information in this report comes from Reuters.