Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Russian Tax Service Demands $140 Million from IKEA

Mon 05 Feb 2024 | 07:31 PM
Israa Farhan

The Russian Federal Tax Service has initiated legal proceedings against a local subsidiary of the Swedish furniture giant IKEA, seeking a substantial sum of 12.9 billion rubles ($142 million), as reported by the business daily Kommersant, citing court documents.

The case emerged in the arbitration case database on January 30, but detailed information about it remains undisclosed.

While IKEA ceased its operations in Russia amidst Western sanctions imposed on Moscow due to the Ukraine conflict last year and divested its factories, it still maintains assets within the country.

According to the state real estate register, Ikea Torg LLC owns a valuable warehouse located in the village of Yesipovo, just outside Moscow.

This facility formerly served as a distribution center for IKEA's retail outlets and online store.

The warehouse carries an estimated value exceeding 34 billion rubles ($374 million). According to a source cited by Kommersant, IKEA's intention was not to sell the property but rather to seek a rental arrangement for up to three years.

In early 2023, the online marketplace Yandex.Market reportedly listed job opportunities with the Yesipovo facility as the workplace, although the company later denied any involvement in renting the premises.

Following IKEA's departure, Yandex.Market acquired all remaining IKEA products in Russia for resale.