Sales have been very good for the 10 years Ikea has been doing business in Russia. The company’s inexpensive furnishings designed for samll spaces are a perfect fit for the average flat dwelling Russian. With the success at retail, the compny has experienced horrendous problems with Russian bureaucracy and corruption that amounts ot a never ending shake down. Recently the company announced it would halt expansion in Russia if the complecxity of doing business in Russia cannot be simplified.

…..the Swedish retail giant has faced numerous obstacles to its growth from regional authorities and regulators, most recently in Samara. The company’s experience has served as a cautionary tale to others thinking of investing in Russia, although IKEA said it was heartened by improvements in recent years.

“We’re currently building a mall in Ufa, and we’re preparing for the construction of a shopping center in Mytishchi,” Kaufmann said. “We have design projects for outlets in Saratov and Voronezh ready.”

In June, Kaufmann said IKEA would halt all future investments in Russia after it was not allowed to open the Samara mall ­ almost two years after it was finished ­ because of bureaucratic barriers posed by local officials. (Johnsons Russia List)

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