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IKEA Plans to Invest Billions in Russia despite Sanctions

IKEA is wildly popular in Russia's major cities

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This article originally appeared at German Economic News

The Swedish furniture maker Ikea plans to expand despite the crisis in Russia. Last year, Ikea had a turnover of six billion euros in the Russian market. In the years come eden department stores, shopping centers and even manufacturing facilities in Russia will be reinforced.

The multinational furniture giant Ikea wants to continue to invest billions in Russia, in spite of the severe crisis. "We want to Ikea made ​​available to more people," citing Dagens Nyheter  the Ikea spokeswoman Daniela Rogosic. Ikea has achieved a turnover of six billion euros Russia 2014, reported . Total revenues should be invested nationwide.

In 2013, Russia was in relation to the furniture manufacturer's four largest market sales. This was the Russian before the Swedish market.

"Thanks to the Ikea department stores and shopping centers Russia is one of our fastest growing markets," the company reported in its annual report 2013 . However, the Russian economy was last year, due to the oil price decline, sanctions, Ukraine crisis the turbulence in the stock market and the ruble-decay hit hard.

Rogosic literally: "Our goal is to continue to invest both in stores and in the value chain. This is intended to 2020 sales doubling be achieved (...) There are also plans a new factory in Veliky Novgorod with production focusing on wardrobes, kitchen cabinets and storage solutions to build. "

But the clothes manufacturer H & M has great confidence in the Russian market. In the annual report 2013 is reported that there was "great opportunities for expansion in Russia".

The country director of the organization business Sweden, Andreas Giallourakis, says that the situation in Russia increasingly complex. Swedish actors have increasingly financing bottlenecks. Therefore, market entry and location strategies should be well checked. However, he still can not see that Swedish companies have abandoned the Russian market. "Russia is a huge market that is geographically close to Sweden," says Giallourakis.

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