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IKEA to Sell Russian Factories by the end of the Year

An agreement to sell IKEA's factories in Russia could be reached by the end of the Year, according to Russia's Industry and Trade Minister Denis Manturov.

IKEA Store Logo

The Swedish furniture giant is seeking to negotiate its exit from the country after deciding to close its shops in Russia earlier this year following the deployment of Russian troops to Ukraine. Many other western companies, including energy producers, food chains, and clothing retailers, have also left Russia. Manturov did not disclose the potential buyers but stated that IKEA aims to reach an agreement in principle by the end of the Year.

IKEA Closes Russian Stores, Reduces Workforce

IKEA, the world's largest furniture brand, closed its Russian stores in March and announced plans to sell its factories, close offices, and reduce its 15,000-strong workforce in Russia. The company reopened briefly for an online fire sale over the summer. In a statement, IKEA said,

"The sales activities of our factories in Russia are proceeding according to plan. We have agreed with potential buyers not to share any details with respect to them and the integrity of the sales process."

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