Companies who previously had suspended operations in Russia are now leaving the country altogether. Just this week Ponsse and Ikea have confirmed plans are in place to exit the country. Source: Timberbiz
Ponsse has decided to divest its operations in Russia. The divestment of all shares in OOO Ponsse, Ponsse Group’s subsidiary providing PONSSE services in Russia and Belarus, is being negotiated.
“We have been looking for a solution to the challenging situation regarding operations in Russia. We have decided to divest our operations in Russia and Belarus.
“Operating in Russia has become very difficult, and the divestment is also the best option for our local personnel, customers and dealers. We will continue the export restrictions in accordance with economic sanctions and our company’s guidelines,” said Juho Nummela, President and CEO of Ponsse Group.
Ponsse’s export and service operations in Russia have been suspended since 2 March 2022 when the company announced that it will suspend all exports to Russia and Belarus. At the same time, OOO Ponsse suspended its local spare parts and maintenance services.
On 3 March, Inter IKEA Group and Ingka Group announced the pausing of IKEA operations in Russia and Belarus as a consequence of the war in Ukraine.
Since then it has been a priority to provide support and security to co-workers, and the groups of companies have been able to guarantee 6 months’ salary for all co-workers, as well as core benefits.
As the circumstances have not improved and the war continues. Businesses and supply chains across the world have been heavily impacted and the company does not see that it is possible to resume operations any time soon.
As a consequence, Inter IKEA Group and Ingka Group have decided to enter a new phase to further scale down the IKEA business in Russia and Belarus.
- The IKEA Retail business will remain stopped, and the workforce will be reduced, meaning that many co-workers will be affected. In order to support the scaling down process, Ingka Group plans to sell out its home furnishing inventory in Russia.
- The Inter IKEA owned Industry business in Russia will reduce the workforce and start the process of finding new ownership for all four factories.
- Import and export of IKEA products to and from Russia and Belarus will remain stopped. The two Inter IKEA owned purchase and logistics offices in Moscow and Minsk will close permanently.
