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Ikea plans expansion in Russia

Ikea plans expansion in Russia

Almhult, Sweden - September 25 - Ikea will borrow $100 million from the European Bank for Reconstruction and Development (EBRD), based in London, to expand its home furnishings chain in Russia, according to a Dow Jones report. Ikea, like other foreign investors, is looking to Russia for expansion as the country's economic and political reform moves forward. It is one of the few international retailers that have attempted to break into the Russian market.
Ikea already operates two stores in the Moscow area and may open as many as two stores in St. Petersburg. The cost of building each store is estimated at $40 million and should take around nine months to complete. Ikea is also reportedly considering stores in other large Russian cities such as Nizhny Novgorod, Saratov, Ufa and Kazan.

The EBRD was established in 1991 to help countries in Eastern Europe and the former Soviet Union make the transition from centrally planned to market economies.

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