November 19, 2024

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Ikea and H&M in Russia

Ikea and H&M in Russia

IKEA, the world’s largest furniture company, has 17 stores in Russia. company struggle said It has “enormous human impact” and “leads to serious disruptions to supply chain and business conditions.” As a result, it decided to stop all manufacturing and retail operations in Russia, as well as all trade with Russia and its ally Belarus.
Dozens of Western companies have exited or it halted operations in Russia in response to the invasion, resulting in sanctions and disruption of supplies.

IKEA said 15,000 workers would be directly affected by the shutdown in the region. But the company will keep paying them, at least for a while.

The company said in a statement, “The ambitions of the company’s groups are long-term, and we have worked to secure employment and income stability for the near future and provide support to them and their families in the region.”

IKEA also announced an “immediate donation of €20 million ($22 million) for humanitarian assistance to those forcibly displaced as a result of the conflict in Ukraine”, in response to an emergency appeal from the United Nations High Commissioner for Refugees.

The parent company Ingka Group is one of the largest operators of shopping centers in Russia. It said its “mega” malls would continue to operate to provide food, clothing and goods to 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 cares about all colleagues and joins all those who advocate peace around the world,” the Swedish fashion retailer said in a statement. Clothes and other necessities were donated by the company.

Ikea and H&M join a A growing number of global companiesIncluding an Apple (AAPL)And the Disney (dis) And the stronghold (F)which is retreating from operations in Russia due to its invasion of Ukraine.

CNN’s Chris Liakos contributed to this report.