Ikea Opens Moscow Mall After Pipe Flap

22 de Diciembre de 2004

Swedish furniture giant Ikea belatedly opened a massive new mall outside Moscow on Wednesday after appealing for support from the regional governor to end an acrimonious dispute that included accusations of lying and suggestions of bribe-seeking.

Ikea opened its 2.5 million-square foot Mega mall in the Moscow suburb of Khimki after receiving official permission in a document signed Tuesday, Ikea spokeswoman Irina Vanenkova said.

The company had appealed to Moscow region Governor Boris Gromov a day earlier in a bid to clear the way for the opening and was pleased with the "quick and supportive" response from his office, Vanenkova said.

In a dispute that underscored the perils of doing business in Russia - even for the biggest foreign investor in its retail market - an opening celebration for Ikea's new Mega mall planned for Friday was scuttled after a regional official said a nearby underground gas pipeline was a safety hazard.

In a statement posted Tuesday on its Web site, the Moscow regional government emphasized that Ikea had not yet received permission to use the center and said that it had failed to move the gas pipeline, despite requests in November.

Ikea, however, said the pipeline was never a problem before and that its suggestions for making it safer had been ignored. Ikea management hinted in recent interviews that a policy of not giving bribes was slowing work in Russia.

Vanenkova said an agreement to build a structure to further secure the underground pipeline has been signed, and that work would start Thursday and be completed in about a week. The agreement came after Gromov's response and a meeting with Khimki officials.

Speaking to media Wednesday, the head of Ikea's Russian operations, Lennart Dahlgren, affirmed what he said was an earlier pledge by the company to donate $1 million for the development of children's sports in Khimki.

Khimki Mayor Vladimir Strelchenko half-jokingly responded that "I will take this bribe for the district with pleasure" and would account painstakingly for the money. He added that "for such a large company as Ikea - maybe the same amount every year" would be appropriate.

That exchange prompted laughter, but the public dispute over the mall jeopardized its opening for the holiday shopping season and added to concerns about doing business in Russia, where red tape is rife and projects can be subject to the whims of bureaucrats.

Vanenkova called the incident a misunderstanding and said it was a "learning experience" for both sides about "different mindsets and different cultures."

The 250-store tenant mall stands adjacent to an Ikea store off a main highway just outside Moscow. It is similar to a Mega shopping center that Ikea previously opened next to its store southwest of Moscow and whose shops, multiplex theater and skating rink have been visited by 4 million customers this year.

Since opening the Khimki store - its first in Russia - in 2000, Ikea has invested nearly $1 billion in Russia, taking advantage of a retail boom. In addition to the stores anchoring the two Mega shopping centers outside Moscow, it has opened stores in St. Petersburg and Kazan.

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