Ingka group, the operator of IKEA international store, said on Sunday that the company had extended the salary payment period of 12000 employees in Russia for three months until August, and may continue to pay local employees after that After the outbreak of the conflict between Russia and Ukraine, IKEA announced in early March that it would temporarily close its stores in Russia and suspend procurement because of the interruption of the supply chain caused by the war and the severe terms of trade. At that time, the company said that all affected Russian employees would be paid in rubles, at least until May.
"We have managed to extend this period to six months. We have been monitoring, analyzing and observing what is happening and will make decisions in the future," ingka retail manager tolga oncu said in an interview on Sunday
After the outbreak of the conflict between Russia and Ukraine, a large number of Western companies suspended their business in Russia. In addition to IKEA, some companies, including McDonald's and Renault, have also promised to continue to pay Russian employees for the time being.
IKEA operates through the franchise system. Ingka is the main franchisee of IKEA international stores and is also responsible for supply. There are 2500 employees in three factories in Russia.
Ingka is also one of the largest owners of shopping centers in the world. So far, 14 shopping centers with the brand "mega" in Russia are still open. Oncu declined to say whether the company was considering a complete exit from Russia in its wealth statement on Sunday.
Ingka has 17 stores and a distribution center in Russia. In the latest fiscal year, Russia was the company's tenth largest market, with retail sales of 1.6 billion euros, accounting for 4% of its global retail sales.