IKEA and Metsa have both issued information regarding their activities in the Russia with IKEA stating that the actions of Inter IKEA Group and Ingka Group have been to support the personal safety and security of IKEA co-workers and their families. Source: Timberbiz
The war has had a huge human impact already. It is also resulting in serious disruptions to supply chain and trading conditions. For all of these reasons, the company groups have decided to temporarily pause IKEA operations in Russia.
This means that:
- Inter IKEA Group has taken the decision to pause all export and import in and out of Russia and Belarus.
- Inter IKEA Group has taken the decision to pause all IKEA Industry production operations in Russia. This also means that all deliveries from all sub-suppliers to these units are paused.
- Ingka Group has taken the decision to pause all IKEA Retail operations in Russia, while the shopping centre Mega, will continue to remain open to ensure that the many people in Russia have access to their daily needs and essentials such as food, groceries and pharmacies.
These decisions have a direct impact on 15,000 IKEA co-workers. The ambitions of the company groups are long term, and the company says it has secured employment and income stability for the immediate future and provide support to them and their families in the region.
Several initiatives have already started throughout IKEA, together with established humanitarian organisations, to support the affected people with emergency relief in the most needed regions.
IKEA Foundation, funded by Ingka Foundation, announced an immediate donation of €20 million for humanitarian assistance to those who have been forcibly displaced as a result of the conflict in Ukraine. This is in response to an emergency appeal from UNHCR, the UN Refugee Agency, to scale up its assistance and protection to people affected by the conflict in Ukraine.
In addition, Inter IKEA Group and Ingka Group are initially granting €10 million each to provide support in products and other assistance to UNHCR, Save the Children and other organisations working in the local markets.
The operations of Metsä Group’s only production unit in Russia, the Svir sawmill, have been suspended. Wood procurement in Russia for the Svir sawmill and imports to Metsä Group’s Finnish and Swedish mills has also been discontinued.
The Metsä Svir sawmill in Svir, Russia produces sawn timber for a range of industries. Approximately 95% of the Svir sawmill’s production is exported.
