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Ikea joins H&M and Spotify in suspending operations in Russia

Swedish furniture giant Ikea announced on Thursday it would suspend its activities in Russia and Belarus, affecting nearly 15,000 employees, 17 stores and three production sites, in response to the war in Ukraine.

Ikea joins H&M and Spotify in suspending operations in Russia
File photo of an Ikea store in Stockholm. Photo Janerik Henriksson/TT

“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, Ikea has decided to temporarily pause operations in Russia,” the company said in a statement to AFP.

The suspension mainly concerns Russia, where the Swedish group has been present since 2000 and is one of the largest Western employers.

Operations in Belarus would also be halted, though the country hosts only a few suppliers and has no shops, according to Ikea.

“The devastating war in Ukraine is a human tragedy, and our deepest empathy and concerns are with the millions of people impacted,” the company said.

“These decisions have a direct impact on 15,000 Ikea co-workers, and the company groups will secure employment and income stability and provide support to them and their families in the region,” Ikea said.

While the stores operated by the Ingka group account for the bulk of the workforce affected, 12,000 people, Ikea also has nearly 2,500 employees working in manufacturing, with three factories in Russia.

According to the company, 47 suppliers in Russia and 10 in Belarus, would be affected by the decision, which also puts a stop to imports and exports between the two countries.

Prior to this announcement, Ikea had initially announced that it would leave its shops in Russia open, which was met with criticism in Sweden.

Several other Swedish companies have already halted their Russian operations over the war and sanctions imposed on Russia.

On Monday, Swedish truck maker Volvo said it was stopping sales and halting production at its Kaluga plant, and telecoms giant Ericsson also said it would halt deliveries to Russian clients. On Wednesday, Swedish clothing giant H&M said that it would halt all sales in its Russian stores.

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Why Sweden may have an alcohol shortage this weekend

If you're thinking of quitting the booze, now may be a good time, as Sweden may run low on alcohol in just a few days.

Why Sweden may have an alcohol shortage this weekend

The reason? Problems down the distribution chain, as a result of a ransomware attack by a North Korean hacker group on Skanlog, a logistics firm that delivers to Sweden’s state-run alcohol monopoly Systembolaget, reports business site Dagens Industri.

Systembolaget confirmed to The Local that this may have a knock-on effect on supplies.

“This is one of our distributors, they deliver up to 25 percent of the alcohol. But we do have other suppliers as well, we have to scale up the deliveries. So I cannot say exactly what the shortage will look like in the stores,” Systembolaget press officer Sofia Sjöman Waas said.

Not only the weekend is coming up, but also Walpurgis Night on April 30th, a popular party day in university towns.

“It is too early to say what will happen. Small stores around the country have one delivery once a week and this might not affect you at all. Other stores have deliveries every day,” Sjöman Waas told The Local.

It’s unlikely that shelves will run completely dry, but some products – mostly wine, but also beer and liquor – may be out of stock.

“But in general our consumers don’t buy a lot. They come in, they buy a couple of bottles, and they consume it within a couple of days or a week,” said Sjöman Waas.

Article by Emma Löfgren and Gearóid Ó Droighneáin

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