All major foreign companies have already made decisions regarding the future of their business in Russia and are issuing them in installments. Dmitry Moskalenko, President of the Russian Council of Shopping Centers (RSTC), announced this to Izvestiya on Wednesday, June 22.
“All large companies have long had decisions to continue doing business in Russia or to leave our country,” he said.
Moskalenko expressed hope that they would not completely go away, but noted that the trend for the outcome continues.
Earlier in the day, Pavel Lyulin, vice-president of the Union of Shopping Centers, told Izvestia that the Swedish-based Dutch furniture and home goods chain IKEA had begun closing its outlets in Russia. According to him, the company will be forced to pay fines – hundreds of millions of rubles – for breaking lease agreements in the shopping center.
It also became known that the network breaks off relations with its points in the shopping center of the capital and St. Petersburg. Lyulin recalled that we are talking about small IKEA CITY formats, of which there were about ten. According to him, the company sells all the goods in stores and studios located in Megas, that is, it “clears” the area from products. This gives reason to believe that IKEA will mothball its retail in Russia. In the future, other trading operators may open on the company’s sites.
The company’s decision to leave Russia completely was announced on June 15.
IKEA has 26 stores and studios in 12 Russian cities. In Moscow, brand stores are located in ten shopping centers.
In early June, Lyulin said that about 13% of shopping centers want to terminate the lease agreement with foreign retailers.
On June 8, Izvestia learned that the Ministry of Finance had prepared and sent to the Ministry of Economic Development a bill that would allow Russian property owners to terminate lease agreements with foreign companies that decided to leave Russia. Lyulin noted that such a law could secure the right of a Russified tenant (that is, one who changed brand and sign) to work under the same conditions as before.
International companies have begun to suspend their activities in Russia in connection with the sanctions imposed by Western countries in response to the conduct of a special operation of the Russian Federation in the Donbass.