European Bank’s loan eases Ikea into Russia

Date: 14/11/02

SWEDISH furniture firm IKEA will receive a €100 million loan by the London-based European Bank for Reconstruction and Development to help it build Russia's first giant shopping and entertainment complex.

The bank (EBRD) - whose owners include the EU and European Investment Bank - said the complex, in south-west Moscow, will create a 170,000 square metre shopping mall, producing 5,000 jobs and attracting 25 million visitors a year.

It will include five major 'anchor' stores, 250 smaller shops, ten restaurants, a multi-screen cinema and a skating rink - alongside IKEA's existing store in the region.

'IKEA is a company focused on a long-term view of Russia and committed to good corporate governance and sustainable development,' said EBRD's first vice-president Noreen Doyle.

'In turn, there are interesting possibilities for follow-up investments with IKEA and to help the development of local suppliers,' she added.

Swedish furniture firm Ikea will receive a €100 million loan by the European Bank for Reconstruction and Development (EBRD) to help it build Russia's first giant shopping and entertainment complex.