MOSCOW - Russian company Invest Plus has completed a deal to buy IKEA's largest Russian production asset, its Novgorod factory, more than a year after the Swedish furniture giant stopped its activities in Russia over the Ukraine conflict.
IKEA stopped all retail and production operations in Russia soon after Moscow sent troops into Ukraine on February 24th, along with scores of other Western companies. The process of concluding the deal was not easy and quite lengthy, Invest Plus owner Vadim Osipov said in a statement, thanking all parties involved - IKEA, Russian and Swedish regulators, and Russia's Ministry of Industry and Trade.
Inter IKEA GroupIKEA Group could not be reached for comment before working hours. It has previously said it was selling four factories in Russia, Tikhvin, Novgorod and Vyatka.
Invest Plus is a special purpose vehicle owned by Osipov, who is CEO and co-owner of Slotex, a leading domestic producer of laminates and kitchen worktops.
Sales by Western companies have been complicated because firms from so-called unfriendly countries - those that imposed sanctions against Russia - need approval from a government commission.
Russia's industry ministry said in February that Slotex and the lumber producer Luzales would buy the IKEA plants.
Osipov said the backbone of the factory's workforce had been retained.
Invest Plus said it would guarantee the number of employees for at least a year and that full production would resume in the next two to three months.
The goal is to return the highly popular and quality production of the Novgorod factory to Russia's furniture market as quickly as possible, Osipov said.