Volkswagen and Ikea suspend business in Russia

Companies join exodus of firms leaving the country from Shell to Burberry

Volkswagen and Ikea have become the latest companies to suspend business in Russia as Kremlin forces pressed ahead with their offensive, firing missiles at Kyiv overnight and stepping up their campaign to take key cities.

Volkswagen said it would stop producing vehicles in Russia and exporting to that market until further notice because of the invasion of Ukraine.

The German carmaker joins an exodus of companies from Russia, reversing three decades of investment by Western and other foreign businesses there following the collapse of the Soviet Union in 1991.

Firms ranging from energy giants Exxon Mobil and Shell to fashion retailers Burberry and HandM have announced they are curtailing operations or leaving entirely.

Ikea said on Thursday it would pause all operations in Russia and Belarus, affecting about 15,000 employees. – Bloomberg