Ikea, the world’s largest furniture company, has 17 stores in Russia. The company said the conflict had a “huge human impact” and “leads to serious disruptions in the supply chain and trading conditions”. As a result, it decided to suspend all production and trade operations in Russia, as well as all trade with the country and its ally Belarus. Dozens of Western companies have left or suspended operations in Russia in response to the invasion, sanctions and disruptions.
Ikea said 15,000 workers would be directly affected by the shutdown in the region. But the company will continue to pay them, at least for a while.
“The ambitions of the company groups are long-term and we have provided employment and income stability for the near future and provide support to them and their families in the region,” the company said in a statement.
Ikea also announced an “immediate donation of 20 million euros ($ 22 million) in humanitarian aid to those forcibly displaced by the conflict in Ukraine,” in response to an urgent call from the UN High Commissioner for Refugees.
The parent company Ingka Group is one of the largest mall operators in Russia. He said his Mega malls would continue to operate to deliver food, clothing and goods to the Russians.
H&M
Clothing company H&M Group (HNNMY), which has 168 stores in Russia, said late Wednesday that it had also decided to temporarily close the store in Russia.
“H&M Group takes care of all colleagues and joins all those in the world who call for peace,” said a statement from the Swedish fashion retailer. “The clothes and other necessities were donated by the company.”
Ikea and H&M are joining a growing number of international companies, including Apple (AAPL), Disney (DIS) and Ford (F), which are canceling operations in Russia due to its invasion of Ukraine.
– Chris Liakos of CNN contributed to this report.