• 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

“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)

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!
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