• Sweden's news in English

Ikea swindled out of 1.5 billion in Russia

TT/The Local · 20 Jun 2009, 10:30

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

Facebook Twitter Google+ reddit

“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.

Story continues below…

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)

Facebook Twitter Google+ reddit

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
Julian Assange
Sweden won't suspend Assange warrant for funeral
Assange has been in the Ecuadorian embassy in London since 2012. Photo: Alastair Grant/AP

The WikiLeaks founder has requested a temporary suspension of an arrest warrant so he could leave the Ecuadorian embassy in London for a funeral.

'I want to see women priests in the Catholic Church'
Archbishop Antje Jackelén meeting Pope Francis earlier in 2016. Photo: L'Osservatore Romano/AP

'I told the pope last year during a speech it is time to no longer speak for women about women, but to speak with women,' Sweden's Archbishop says.

Sweden one of world's easiest places to do business: report
A meeting at a Stockholm office. Photo: Simon Paulin/imagebank.sweden.se

It is easier to do business in Sweden now than it was last year, according to a World Bank report.

This Swede has built a procrastinator's dream
Anders Åberg has built a website that allows you to hear what’s going on above the Earth. Photo: Personal & NASA

Ever wondered what's going on in the sky above the earth and in space? Now you can hear for yourself.

Presented by Malmö Tourism
Seven reasons why Malmö is the football capital of Sweden
Players from FC Rosengård, Sweden's most successful women's football team. Photo: Hangsna

It’s official, and anyone who tells you otherwise is wrong.

Fake police car driver seized after confronting real police
File photo of a police car. Photo: Johan Nilsson/TT

Three men in a fake police car were left red-faced after they tried to stop a man in southern Sweden who turned out to be an off-duty officer.

This tiny bird can fly for ten months straight: scientists
The common swift while not in flight. Photo: Madis Veskimeister/Wikimedia

Swedish scientists have found that this bird stays in the air for almost a year without landing.

Why the Pope is visiting Sweden next week
Pope Francis in the Vatican. Photo: AP Photo/Alessandra Tarantino

Pope to nail reconciliation agenda to Lutherans' door in southern Sweden.

The Local Recipes
How to make no-knead sourdough bread like a Swede
No-knead sourdough bread. Photo: John Duxbury/Swedish Food

Swedes love their sourdough bread. Food writer John Duxbury shares his favourite Swedish recipe for a no-knead loaf.

Meet Sweden's lonely Donald Trump voter
A Donald Trump campaign button. Photo: Rogelio V Solis/AP

The Local talks to an American Donald Trump supporter on what it is like living in progressive stronghold Sweden.

Sponsored Article
Top 7 tips to help you learn Swedish
People-watching: October 26th
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
Sweden cuts 2016 refugee forecast
Is Game of Thrones coming to Sweden?
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
One expat's strategy for making friends in Stockholm
Property of the week: Kungsholmen, Stockholm
Sponsored Article
Nordic fashion in focus at Stockholm University
Will Swedes soon be looking for fairtrade porn?
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
Sponsored Article
Stockholm: creating solutions to global challenges
People-watching: October 21st-23rd
Sponsored Article
Last chance to vote absentee in the US elections
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Sponsored Article
This is Malmö: Football capital of Sweden
Angry elk chases Swede up a lamp post
Sponsored Article
Where is the Swedish music industry heading?
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
People-watching: October 20th
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Swedish for programmers: 'It changed my life'
Swede punches clown that scared his grandmother
Sponsored Article
Stockholm: creating solutions to global challenges
Fans throw flares and enter pitch in Swedish football riot
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Where is the Swedish music industry heading?
Swedish school to build gender neutral changing room
Sponsored Article
One expat's strategy for making friends in Stockholm
People-watching: October 14th-16th
Sponsored Article
Nordic fashion in focus at Stockholm University
Man in Sweden assaulted by clowns with broken bottle
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available