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IKEA May Delay Investment In Russia After Court Ruling

IKEA has warned it could delay planned investment in Russia after a court ordered it to pay millions of dollars in damages in a long-running legal dispute.

The Swedish company said on August 30 that it had plans to invest more than 100 billion rubles ($1.54 billion) in Russia, but "recent activities aimed at the IKEA Group related to old legal cases could slow down these investment plans."

The chain, which has 14 stores in Russia, accused its opponents of attempting "to use illegal methods to extract further money” from it.

The warning comes after a Russian court ordered the furniture giant to pay more than 507 million rubles ($7.8 million) to a Russian businessman as part of a decade-long legal wrangle over supplying power to stores in the city of St. Petersburg.

IKEA said it would dispute the decision.

The case is one of numerous legal cases launched in Russia against the firm.

Based on reporting by AFP and TASS