Two major retailers, Ikea and H&M, are temporarily halting operations in Russia and Belarus due to the invasion of Ukraine.
Ikea, the world's largest furniture company, has 17 stores in Russia. The company said the conflict has "a huge human impact" and "resulting in severe disruption to supply chain and business conditions." As a result, it has decided to halt all manufacturing and retail operations in Russia, as well as halt all trade with the country and its ally Belarus.
Dozens of Western companies have closed or closed operations in Russia in response to aggression, sanctions and supply disruptions.
Ikea said 15,000 workers would be directly affected by the shutdown in the region. But the company will keep paying them, at least for some time.
"The ambitions of the company groups are long-term and we have achieved employment and income stability for the immediate future and provide support to them and their families in the region," the company said in a statement.
Ikea also announced an "immediate donation of €20 million ($22 million) for humanitarian aid to those who are forcibly displaced as a result of the conflict in Ukraine" in response to an emergency appeal from the United Nations High Commissioner for Refugees.
The parent company Ingka Group is one of the largest mall operators in Russia. It said its "mega" malls would continue to operate to provide food, clothing and accessories to Russians.
H&M
Clothing company H&M Group (HNNMY), which has 168 stores in Russia, said late Wednesday that it has also decided to temporarily close stores in Russia.
The Swedish fashion retailer said in a statement, "The H&M Group cares for all its partners and joins all those around the world who are calling for peace." "Clothes and other necessities are donated by the company."
Ikea and H&M join a growing number of international companies, including Apple (AAPL), Disney (DIS) and Ford (F), operating operations back in Russia following the Ukraine invasion.