Pervasive corruption and an impenetrable maze of bureaucracies have caused IKEA to freeze new investment projects in Russia. One example of IKEA’s immense frustration with Russia is it’s 130,000 square meter shopping complex in Samara. It’s opening was originally planned for late 2007, but was then delayed by authorities eight times. According to 83 year old IKEA founder Ingvar Kamprad, Russia’s ‘unpredictable characater of administrative procedures in Russia’ has cost IKEA a total of $190 million so far. It’ll be interesting to see if IKEA’s decision will have a ripple effect among other Western companies who are equally frustrated by Russia’s business environment.
Like 0 Thanks! You've already liked this3 comments