Ikea accuses Russia energy provider of massive fraud

Swedish furniture chain Ikea on Saturday accused its Russian electricity and gas providers of massive and systematic fraud amounting to 1.5 billion kronor (190 million dollars). According to Ikea founder and majority shareholder Ingvar Kamprad, the fraud applied to Ikea's 11 warehouses in Russia.
A spokeswoman for the company added that claims for damages have been brought against the distributors for breach of contract. The 83-year-old Kamprad reported that the Russia warehouses in the meantime have been provided with generators to supply their own energy needs. "The entire thing will be a horribly expensive affair," he said.
Kamprad had pushed for Ikea's entry into the Russian market at the end of the 1990s against the opposition of this own management. He commented that at the last supervisory board session he had proposed opening a first Ikea store in Iran, but was not able to persuade the board of the idea. However, this project was to be kept under consideration.