Agreement Over Sale Of IKEA In Russia Could Be Reach In Days

Agreement Over Sale Of IKEA In Russia Could Be Reach In Days

The sale of IKEA’s Russian factories could be finished by the end of the year, as per Russia’s industry minister, as the Swedish furniture giant seeks to exit the country.

IKEA decided to close its shops in Russia after Moscow sent out tens of thousands of troops to Ukraine in February for a “special military operation.” Many other Western corporations, ranging from energy producers to food and clothing retailers, have abandoned Russia.

Denis Manturov, Minister of Industry and Trade, said negotiations were ongoing but declined to identify the potential buyers.

In an interview with TASS on Wednesday, Manturov stated that IKEA hopes to reach a preliminary agreement with the buyer or buyers by the end of the year.

IKEA, the world’s largest furniture retailer, announced in March that it would sell factories, close offices, and lay off 15,000 employees in Russia. During the summer, it reopened for a brief online fire sale.

“Our factories’ sales activities in Russia are proceeding as planned,” IKEA said in a statement. “We have agreed with potential buyers not to share any information about them or the sales process.”

IKEA previously stated that it expected the process of finding new ownership to be completed in 2023.

Previously, IKEA expressed interest in investing Rs 4000 crore in the state and opening retail stores and luxury malls. The company’s officials met with a delegation from Uttar Pradesh, as well as officials from the Indian embassy in Stockholm. Ikea will also attend the upcoming Uttar Pradesh Global Investors Summit.

The meeting also saw the officials discuss the company’s upcoming store in Noida as well as other expansion plans in the state to ease the brand’s business. Ikea representatives have also been invited to attend UPGIS 2023, which will be held in the state capital from February 10 to 12.

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