Source Pravda.Ru

IKEA Angered by Planned Increases in Customs Duty on Furniture

The Russian Foreign Trade Committee's plans to raise import tariffs on furniture manufactured abroad has angered the management of IKEA's Russian branch. In an interview with the Swedish newspaper Dagens Nyheter, Lennart Dahlgren, the head of the Swedish furniture concern's Russian branch, said that the company already has to pay customs duty of up to 130% of the value of certain products.

In Dahlgren's opinion, the plans to significantly increase duty on imported furniture are due to pressure on the Russian government from Russian furniture makers. 'Russian furniture companies are trying to buy time by hiding behind the barrier of customs tariffs instead of developing their products to a competitive level,' said Dahlgren.

IKEA's Russian head hopes that the Ministry of Industry and the Foreign Trade Committee will decide not to raise customs tariffs. He said that if this is not the case, a serious blow will be dealt to the investment plans of many foreign companies.

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