IKEA will continue to pay its staff in Russia until August, extending the period by three months

The owner Ingka Group says its may continue to pay its 12,000 staff beyond that as well.

The furniture brand’s stores closed early in March due to supply chain disruption and challenging trading conditions triggered by the war in Ukraine.

Upon closing the company promised to pay staff in roubles until the end of May but have now managed to prolong that to six months.

Ingka’s Retail Manager Tolga Oncu says they are “monitoring, analysing, looking at what’s happening and will make decisions as we go forward”.

IKEA is one of many western companies that have withdrawn their services from Russia pausing operations due to Russia’s invasion of Ukraine.

McDonalds and Renault are also continuing to pay out their Russian staff.

Ingka is the main franchisee to enter IKEA, and is also responsible for supplying the company and employs 2,500 people at three factories.

The holding company based in the Netherlands is also one of the world’s biggest shopping centre owners, with 14 malls still in operation in Russia.

Oncu did not specify how IKEA was sourcing the money to pay local wages but assured that they are complying with all the sanctions and “utilising the assets” that they have in Russia.