Russian company completes deal to buy IKEA factory
IKEA halted all operations in Russia soon after Moscow sent troops into Ukraine
27 March 2023 - 11:21
byAlexander Marrow
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Moscow — Russian company Invest Plus on Monday said it had completed a deal to buy IKEA’s largest Russian production asset, its Novgorod factory, more than a year after the Swedish furniture giant first paused its activities in Russia over the Ukraine conflict.
IKEA halted all retail and production operations in Russia soon after Moscow sent troops into Ukraine on February 24, along with scores of other Western companies. IKEA briefly resumed online sales last summer.
“The process of concluding the deal was not easy and quite lengthy,” Invest Plus owner Vadim Osipov said in a statement, thanking all parties involved — IKEA, Russian and Swedish regulators, and Russia’s ministry of industry and trade.
Brand owner Inter IKEA Group could not be reached for comment before working hours. It has previously said it was selling its four factories in Russia, in Tikhvin, Novgorod and Vyatka.
Invest Plus is a special purpose vehicle (SPV), beneficially owned by Osipov, who is CEO and co-owner of Slotex, a leading domestic producer of laminates and kitchen worktops.
Sales by Western companies have been complicated as deals involving firms from so-called unfriendly countries — those that imposed sanctions against Russia — need approval from a government commission.
Russia’s industry ministry in February said that Slotex and lumber producer Luzales would buy the IKEA plants.
Osipov said the backbone of the factory’s workforce had been retained.
Invest Plus said it would guarantee to maintain the number of employees for at least a year and that full production would resume in the next two to three months.
“Our goal is to return the highly popular and quality production of the Novgorod factory to Russia’s furniture market as quickly as possible,” Osipov said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Russian company completes deal to buy IKEA factory
IKEA halted all operations in Russia soon after Moscow sent troops into Ukraine
Moscow — Russian company Invest Plus on Monday said it had completed a deal to buy IKEA’s largest Russian production asset, its Novgorod factory, more than a year after the Swedish furniture giant first paused its activities in Russia over the Ukraine conflict.
IKEA halted all retail and production operations in Russia soon after Moscow sent troops into Ukraine on February 24, along with scores of other Western companies. IKEA briefly resumed online sales last summer.
“The process of concluding the deal was not easy and quite lengthy,” Invest Plus owner Vadim Osipov said in a statement, thanking all parties involved — IKEA, Russian and Swedish regulators, and Russia’s ministry of industry and trade.
Brand owner Inter IKEA Group could not be reached for comment before working hours. It has previously said it was selling its four factories in Russia, in Tikhvin, Novgorod and Vyatka.
Invest Plus is a special purpose vehicle (SPV), beneficially owned by Osipov, who is CEO and co-owner of Slotex, a leading domestic producer of laminates and kitchen worktops.
Sales by Western companies have been complicated as deals involving firms from so-called unfriendly countries — those that imposed sanctions against Russia — need approval from a government commission.
Russia’s industry ministry in February said that Slotex and lumber producer Luzales would buy the IKEA plants.
Osipov said the backbone of the factory’s workforce had been retained.
Invest Plus said it would guarantee to maintain the number of employees for at least a year and that full production would resume in the next two to three months.
“Our goal is to return the highly popular and quality production of the Novgorod factory to Russia’s furniture market as quickly as possible,” Osipov said.
Reuters
Despite sanctions, Western brands still available to Russian consumers
Russia allows sale of Ikea factories to local buyers
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
KATE THOMPSON DAVY: The chorus of criticism and legal opposition to generative ...
Shanghai Ikea store locked down in Covid panic
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.