IKEA withdraws appeal against $130-mln debt

© RIA Novosti . Ruslan KrivobokIKEA withdraws appeal against $130-mln debt
IKEA withdraws appeal against $130-mln debt - Sputnik International
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Russia's Higher Arbitration Court has permitted furniture retail giant IKEA to revoke its appeal against a $130.7-million electricity bill, a court spokesman said on Monday.

Russia's Higher Court of Arbitration has permitted furniture retail giant IKEA to revoke its appeal against a $130.7-million electricity bill, a court spokesman said on Monday.

The case was ended on request from IKEA, which announced last Thursday it had settled all disputes with St. Petersburg's energy contractors. IKEA and its two legal opponents announced their intention to mutually withdraw all lawsuits, putting an end to a long-running row over electricity supply bills.

Last Wednesday, the Swedish furniture giant revoked a similar appeal against a court ruling, which obliged IKEA to pay $170 million to St. Petersburg energy suppliers.

In February 2010, two top IKEA managers, Per Kaufmann and Stephan Gross, were dismissed after being caught giving bribes to an electricity supplier in St. Petersburg in order to get its MEGA mall hooked up.

In June 2009, IKEA founder Ingvar Kamprad accused Russia's energy contractors of overbilling, which led to the company losing $179 million. He announced the retailer was freezing any further investment in Russia "because of pervasive corruption."

IKEA said later the freeze would remain in place until an IKEA mall in the Volga city of Samara opened after years of delays. The opening date is as yet unclear.

The Swedish retailer has opened 11 stores since it came to Russia in 2000.

MOSCOW, December 6 (RIA Novosti)

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