The court in Russia has ordered the seizure of assets belonging to Torg, an affiliate of the global furniture giant IKEA, amounting to nearly RUB 13 billion ($143 million). This action comes after Torg attempted to transfer the said sum to another IKEA-related entity, the Ireland-based Fami Ltd, an action that the Russian Federal Tax Service (FNS) may have interpreted as asset withdrawal, Kommersant newspaper reported. According to FNS, the seized assets are slated to contribute to the state budget, with the court's decree sparing only employee salaries from the seizure.
Torg is reportedly seeking a peaceful resolution to this dispute with the FNS, with IKEA having already extended an offer to the head of the tax authority.
The FNS disclosed that for the first nine months of 2023, Torg incurred losses close to RUB 1.5 billion, reduced its workforce, and began liquidating its vehicles, indicating a halt in business operations. Russia, through judicial means, aims to maximize financial recovery from the firm, given these circumstances.
Ingka Group, which owns Torg, is the largest commercial real estate owner in Russia, with a total and leasable area of 2.3 million square meters and 1.8 million square meters, respectively, including shopping centers and hypermarkets that housed IKEA stores. In October last year, Ingka reached an agreement to sell its Russian portfolio of 14 MEGA shopping centers to a subsidiary of the Gazprombank group. Forbes estimated Ingka Centers' rental income in Russia at $350 million for 2021. Following the suspension of its operations in Russia in spring 2022 and the sale of its last factory in Novgorod in March 2023, IKEA recently extended its trademark registration in Russia until 2033, reported Kommersant.
