Ikea sacks two Russian executives for failing to stamp out corruption

Swedish furniture retailer Ikea sacked two executives for turning a blind eye to bribery by a subcontractor in Russia, just months after it halted expansion in the country because of bureaucratic hurdles.

Ikea’s Russia spokeswoman said the group had dismissed its general director for Russia and Eastern Europe and another senior director. Bribery is a relatively commonplace part of Russian business practice.

The two managers had “shut their eyes” to bribe-giving by a subcontractor in order to resolve a power supply issue at the MEGA shopping mall in St Petersburg, IKEA claimed yesterday. Red tape has kept its finished store in the city of Samara shut for nearly two years.