Support The Moscow Times!

IKEA Faces Antitrust Charges

The Federal Anti-Monopoly Service will bring charges against the Moscow region branch of IKEA for breaking competition laws, the service said in a statement on its web site Tuesday.

The Swedish furniture store, which has three stores in the Moscow region, has been targeted under legislation that prohibits forcing counterparties into unfavorable contracts and creating obstacles for competitors' entry into the market. The statement did not identify the counterparties.

IKEA told The Moscow Times in an e-mailed statement that it had not received a clarification of the charges from the anti-monopoly service and could not comment.

Similar charges were brought against IKEA in 2007 by a Moscow prosecutor in connection with a contract with Italian clothing retailer Bolinni.

Bolinni accused IKEA, which owns the Mega shopping malls, of a breach of contract after the Swedish giant revoked its lease. IKEA said the Italian firm was overdue in its rent payments.

The company said March 30 that it would have to lay off 245 employees after months of delays kept it from opening a store in Samara and that it was reconsidering further investment in Russia, citing the "unpredictability of the administrative processes in some regions."

IKEA says it has invested more than $3 billion in Russia and had been planning to add four stores this year to the 11 that it already runs.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

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 every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more