IKEA closes stores in Russia
STORY: IKEA has become the latest Western firm to close its stores in Russia.
The world's biggest furniture brand is also pausing all sourcing in the country and ally Belarus.
Thursday's (March 3) announcement came as IKEA store owner Ingka Group's retail manager told Reuters it now expected to raise prices by an average of 12% this fiscal year, amid soaring raw material costs and supply chain disruptions.
While a raft of international companies have already halted operations in Russia, IKEA is one of the first to also halt business with Belarus.
The country is purely a sourcing market for the furniture giant; it has no stores there.
In the year through last August, Russia was IKEA's 10th-biggest market with retail sales of $1.8 billion.
IKEA also produces chipboards and wood based products at three sites in Russia, and has around 50 direct suppliers in the country which produce a wide range of goods for the domestic market.
The bulk of products made in Russia are sold in the country.
The decision to pause operations in Russia affects 15,000 employees, but Ingka Group says all staff would get paid, in roubles, for at least the next three months.
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