Swedish furniture giant IKEA has announced further reductions to its operations in Russia as part of an exodus of Western companies in response to Moscow's invasion of Ukraine.
IKEA temporarily closed stores and paused sourcing in Russia in March as international corporations began leaving the Russian market to comply with sanctions designed to punish Moscow for launching the unprovoked invasion.
The company said on June 15 it did not see any possibility to resume sales in the country in the foreseeable future.
Brand owner Inter IKEA said it would start looking for buyers for its four factories, permanently close two purchase and logistics offices in Moscow and Minsk, and cut staff.
The majority of the employees work at Ingka Group, which owns all IKEA stores in Russia.
"Unfortunately, the circumstances have not improved, and the devastating war continues. Businesses and supply chains across the world have been heavily impacted and we do not see that it is possible to resume operations any time soon," Ingka Group said in a statement.
IKEA, which opened its first store in Russia in 2000, has continued paying employees and will do so until the end of August.
The company declined to comment on its plans for its 17 stores, which are currently closed. It said in an e-mail to Reuters that it was "exploring various options" and hinted it might open the doors for Russians for a final time.
"To ensure necessary business processes, we are organizing the sale of homeware goods that are in our warehouses to employees and customers. Dates will be announced soon," IKEA said in the e-mail.
Other multinational companies have exited Russia entirely after announcing moves to sell their assets and sever partnerships with local businesses.