Ikea said Tuesday that it was suspending further investment in Russia, apparently because of pervasive corruption and demands for bribes.
The announcement came after a rare statement by Ikea’s 83-year-old founder in a radio interview that Ikea had decided not to solve problems by slipping money under the table.
Kudos to Ikea for standing up and going public with how corrupt Russia is, but they should not be surprised, and they should have known better than invest money and time in Russia. Russia is run mafia style and people on the inside and who live there can easily tell you that there is little difference between the Russian mafia and the Russian government. I refuse to invest one penny in that country and this article is yet another reason to stay far away from its corrupt ways.
Here is the link: Russian Corruption
Are the U.S. and Canada the only countries you consider for investing? Australia seems promising to me: first world country with rule of law, strong federal balance sheet, a commodity-supported currency, and it’s positioned to benefit from the growth of China and India.
I actually agree. I think Australia offers opportunity. Also, I have in the past invested in one or two European companies and a Japanese company.
I’m thinking of heading over to Australia next winter and doing a little on the ground research, depending on how some other stuff works out between now and then.