IKEA to Hike Prices in Russia

By The Moscow Times

Dec. 2, 2014

Swedish furniture retailer IKEA will raise its prices in Russia to compensate for the falling value of the ruble, the company said Tuesday.

The ruble has depreciated by over 30 percent against the euro this year under the weight of Western sanctions and falling oil prices, which has inflated the cost of imports. IKEA has localized 60 percent of production in Russia, but is still not immune.

"Significant changes in the exchange rate, the rising price of raw materials for furniture production and the growth of transportation costs are having a visible impact on the company's financial results," IKEA's press service told news website Lenta.ru.

The company did not say when it would raise prices.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue