Ikea temporarily shuts down production facilities and most retail operations in Russia, pauses trade with Russia and Belarus in response to Ukraine war; decision directly affects 15,000 workers; Ingka Foundation donates €20M for humanitarian assistance

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March 4, 2022 (press release) –

The devastating war in Ukraine is a human tragedy, and our deepest empathy and concerns are with the millions of people impacted. The immediate actions of Inter IKEA Group and Ingka Group have been to support the personal safety and security of IKEA co-workers and their families, and we will continue to do so.

The war has had a huge human impact already. It is also resulting in serious disruptions to supply chain and trading conditions. For all of these reasons, the company groups have decided to temporarily pause IKEA operations in Russia. 

 

This means that:

Inter IKEA Group has taken the decision to pause all export and import in and out of Russia and Belarus.
Inter IKEA Group has taken the decision to pause all IKEA Industry production operations in Russia. This also means that all deliveries from all sub-suppliers to these units are paused.
Ingka Group has taken the decision to pause all IKEA Retail operations in Russia, while the shopping centre Mega, will continue to be open to ensure that the many people in Russia have access to their daily needs and essentials such as food, groceries and pharmacies.  
 

These decisions have a direct impact on 15,000 IKEA co-workers. The ambitions of the company groups are long term and we have secured employment and income stability for the immediate future and provide support to them and their families in the region.

Several initiatives have already started throughout IKEA, together with established humanitarian organisations, to support the affected people with emergency relief in the most needed regions.

 

IKEA Foundation, funded by Ingka Foundation, has today announced an immediate donation of €20 million for humanitarian assistance to those who have been forcibly displaced as a result of the conflict in Ukraine. This is in response to an emergency appeal from UNHCR, the UN Refugee Agency, to scale up its assistance and protection to people affected by the conflict in Ukraine. 

 

In addition, Inter IKEA Group and Ingka Group are initially granting €10 million each to provide support in products and other assistance to UNHCR, Save the Children and other organisations working in the local markets.

 

The situation is extremely critical and fast moving. The company groups are dedicated to navigate in this reality, with the best interest of people as the highest priority.


 

About IKEA
IKEA offers well-designed, functional and affordable, high-quality home furnishing, produced with care for people and the environment. There are several companies with different owners, working under the IKEA Brand, all sharing the same vision: to create a better everyday life for the many people. IKEA was founded in Sweden in 1943.

About Inter IKEA Group Inter IKEA Group includes Inter IKEA Systems B.V., IKEA of Sweden AB, IKEA Supply AG, IKEA Industry AB and related businesses. Inter IKEA Holding B.V. is the holding company for the Inter IKEA Group.

About the IKEA franchise System The IKEA retail business is operated through a franchise system with franchisees that are authorised to market and sell the IKEA product range within specified geographical territories. Inter IKEA Systems B.V. is the owner of the IKEA Concept and worldwide IKEA franchisor, who also assigns different IKEA companies to develop the range, supply products and deliver communication solutions. Today, 12 different groups of companies own and operate IKEA sales channels under franchise agreements with Inter IKEA Systems B.V.

About Ingka Group
With IKEA retail operations on 32 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres.

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Dan Rivard
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