• Sweden edition
 

Ikea swindled out of 1.5 billion in Russia

Published: 20 Jun 2009 10:30 GMT+02:00
Updated: 20 Jun 2009 10:30 GMT+02:00

Ikea has been swindled out of 1.5 billion kronor ($189 million) in Russia, company founder Ingvar Kamprad revealed on Sommar, a show on Sveriges Radio P1.

“We were completely fooled when it came to electricity and gas deliveries. Something that is going to cost us more than 1.5 billion kronor. I know that this will become a legal matter,” he said, according to Sveriges Radios Ekoredaktion.

Ikea currently has eleven stores in Russia.

Kamprad also revealed that during a recent board meeting he had put forth the idea of establishing an Ikea location in Iran, but this was set aside due to opposition by other board members.

TT/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

14:09 June 20, 2009 by Hauhr
This article tells me absolutely nothing! I would really like to know in what way Ikea was "swindled". Have they been overcharged unfairly/illegally? How exactly were they fooled? Did they think electricity costs X but didn't realise that it actually costs Y? sounds like the mistake a consumer makes, not a well-oiled corporate machine. I would have liked some deeper information/analysis about what has happened and maybe also how much of a setback 1.5 billion dollars represents for Ikea.
15:50 June 20, 2009 by PINGPONG
how much of a setback 1.5 billion dollars represents for Ikea.

its 1.5 billion kr not dollars , hauhr , maybe learn to read
16:20 June 20, 2009 by Nemesis
Its $189 million.

The numbers are for Swedish currency. US currency is for US only. They use different currencies in diferent countries.

Also as we are in Europe, maybe the local would consider curency equivalent in Euros as it is our nearest large currency.

Some details about what actually happened would be nice.
23:25 June 21, 2009 by Mib
Russia has a long way before it can be considered a democracy with proper rules and order.I used to work for a Company that had to pay bribes to get its goods into Russia. This was no 2 bit company. It was a global brand that employed tens of thousands of people.
23:30 June 21, 2009 by jack sprat
Small change by Ingvar standards I think,...hardly a weeks pocket money.

Its a dodgy place now under Putins corrupt regime.

Lots of companies have been trying to pull out as fast as possible with what assets they can for the last year or so.

There is little faith or trust in what he might do next.

It might be wise for I.K.not to haggle over it or he could end up losing out on more than his electric bills.
23:39 June 21, 2009 by jack sprat
Mafia rules on the streets and Putin is happy to let them.

They also rule the streets in most of the ex Soviet Block countries in addition to having a Worldwide influence.

They are bad news wherever they go,making a fortune out of various rackets and that suits Putin.

However there are signs that he may be killing the goose that lays the golden egg as ppl.come to fully recognise him for what he is.
07:09 June 22, 2009 by skane refugee
IKEA is a private company whose profits go to a web of Kamprad family controlled trusts and 'charities'.

The $189m hit is not a threat to the financial health of IKEA as a whole, or probably even to IKEAs Russian operations where they have a very sizeable sourcing operation.

If they have their day in court then either the reputation of IKEA management or the reputation of Russia as an attractive place to invest will take a hit.
11:20 June 22, 2009 by jack sprat
Have to be up early in the morning to pull the wool over Kamprads eyes.

No doubt more companies will be taking note of which way the wind is blowing in Russia, as some already have.

Did read a report that Kamprad was softening up in his old age and was thinking of giving funds from his own "charity" to real charity.

Just hope this setback doesnt change his mind.
17:41 June 22, 2009 by Kooritze
I wonder what Ikea,s profit for the same period in Russia was?

By the way, what is ahppening to articles on this site? Are we going for the shortest with minimum information jounalistic prize or something?
17:51 June 22, 2009 by GefleFrequentFlyer
Care to share the details of this article? Or was it a cut-copy-paste from the Afton?

Ingvar really thinks he's going to get a fair trial in Moscow huh? I suspect his attorney's retainer will correspond with the value he places on his life on this blue earth.
21:30 June 22, 2009 by skane refugee
He's a master of cloaking and spin (even by Swedens extraordinary standards ;o) ;o) ) ... his impressive PR machine somehow managed to save IKEA when his active Nazi past received global publicity and he faced a worldwide boycott of his company ... (his 'darkest hour' according to interviews he's given since)

who knows what his 'charities' will eventually get up to ... but don't hold your breath for real charity anytime soon!
09:25 July 12, 2010 by srmsofttech9
EARN GLOBAL MONEY shows you different earning programs from all over the globe and help people to earn money from different earning program owned by different organizations.

Click Here
Today's headlines
Sweden scraps 'new start zones' after EU input
Integration Minister Erik Ullenhag visits a school in Tensta, one of the neighbourhoods mentioned when he and his colleagues first floated the new start zone proposal. File: TT

Sweden scraps 'new start zones' after EU input

Sweden has abandoned a plan to ease taxes for small companies in blighted areas after the European Commission challenged its legality. READ () »

'Easter eggs an invitation to spread germs'
A typical Swedish Easter egg. Photo: Jessica Gow/TT

'Easter eggs an invitation to spread germs'

A Swedish microbiologist has warned that traditional Swedish Easter eggs laden with candy are an open invitation to the spread of bacteria and viruses. "Is this really a good idea?" he asked. READ () »

Jammed truck snarls Stockholm rush hour
Photo: Anders Wiklund/TT

Jammed truck snarls Stockholm rush hour

PICTURES: A truck got wedged inside a tunnel in central Stockholm on Thursday, with authorities concerned the accident may have damaged cables in the tunnel's ceiling. READ () »

Kids in Victorian garb mark Swedish Easter
A Swedish Easter witch holding daffodils. File photo: TT

Kids in Victorian garb mark Swedish Easter

In India, I'd notice Easter only from the traffic jam outside the churches, but here witches, egg hunts, and feathers mark the Christian holiday. The Local's Deepti Vashisht brings you the various shades of Swedish Easter. READ () »

Swedish MP ordered chemtrail probe
Chemtrails?: Shutterstock.

Swedish MP ordered chemtrail probe

A Swedish MP who launched an official government investigation into the existence of chemtrails tells The Local why he thinks Swedes deserve the truth, even if it may leave some conspiracy theorists unsatisfied. READ () »

PM pleads ignorance of Vattenfall's Nuon bid
Fredrik Reinfeldt answers the constitutional affairs committee's questions. Photo: TT

PM pleads ignorance of Vattenfall's Nuon bid

Sweden's prime minister on Thursday said Vattenfall itself, not its owners the Swedish state, had responsibility for the loss-making Nuon deal. READ () »

'Kockums submarine raid may be illegal': lawyer
Photo: TT

'Kockums submarine raid may be illegal': lawyer

A Swedish lawyer says the Swedish military may have broken the law when it raided the Malmö premises of German defence giant Thyssen Krupp. READ () »

Good weather could blight Easter traffic
Easter traffic two years ago on the E4 motorway. File: Jessica Gow/TT

Good weather could blight Easter traffic

Traffic experts have cautioned Swedes heading to the countryside for what should be a sunny Easter, warning that the most serious accidents often take place when the weather is clement. READ () »

Saab offers Gripen lease to Malaysia
Jas Gripen jets in flight. File photo: TT

Saab offers Gripen lease to Malaysia

Swedish defence giant Saab has offered to rent out fighter jets to Malaysia. READ () »

What's On in Sweden

What's On in Sweden

Check out what's happening with The Local's guide to the main attractions and events in Stockholm, Gothenburg and Malmö - in association with DoToday. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Advertisement:
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
TT
Society
Aussie choir member wows Abba in Sweden
YouTube
Society
Stockholm magic a surprise YouTube hit
Fastighetsbyrån
Society
Gallery: The Local's Property of the Week
Private
Society
Swedes find 200-year-old gravestone in living room
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Deepti Vashisht
Features
Deepti Vashisht dissects the magic of Sweden's personal ID number
Shutterstock
Society
Ten signs you've been in Sweden too long
Society
Jimi Fritze heard every word when doctors discussed taking his organs
Society
A Swedish farmer explains why the new bestiality ban is 'pointless'
ESL
Sponsored Article
Learning Swedish the easy way
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

760
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com