IKEA to Pay Local Employees Until August Despite Halting Russian Operations

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Ingka Group, the parent company of IKEA, the world's largest furniture company, announced on the 8th (local time) that it will pay salaries to about 12,000 employees in Russia until August, after suspending its business in Russia following the Russian airstrikes on Ukraine.

Tolga Oncu, retail manager of Ingka Group, said in an interview with major foreign media on the same day, "We are continuously monitoring and analyzing the situation, observing what is happening, and considering how to decide in the future." IKEA announced in early March that it would suspend its business in Russia and said it would pay employees in rubles at least until May.

Oncu refrained from mentioning the source of the salaries paid to local employees but said, "We are complying with all sanctions. We are utilizing assets located in Russia." Foreign media reported that he also did not answer whether IKEA would completely withdraw from Russia.

Besides IKEA, companies such as McDonald's and Renault, which have temporarily suspended their businesses in Russia, are mostly paying salaries to local employees.

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