Russian court freezes $140 million of IKEA funds

The Krasninsky District Court in the Smolensk Region has ordered 9.3 billion rubles ($140 million) of IKEA Mos assets to be frozen, RIA Novosti news agency reports.

The court satisfied the request of Konstantin Ponomarev to impose interim measures. The businessman is seeking to recover $140 million from IKEA Mos and Alexey Tanko.

The court also prohibited Moscow Region tax authorities from recording any entries in the Unified State Registry of Legal Entities (EGRUL) related to the reorganization of the company, including any mergers or acquisitions.

Court documents reveal that creditors are seeking to reclaim 44 billion rubles ($686.6 million) from IKEA Mos.

Ponomarev and IKEA have been in litigation over a dispute about electrical generators delivered to IKEA furniture outlets in St. Petersburg. Earlier, five criminal lawsuits were filed against the businessman, which were then dropped due to lack of evidence of a crime.

In August, the Krasninsky court ordered the seizure of $7.8 million from IKEA Mos as part of its dispute with Ponomarev over the purchase of diesel generators.

First published in Russian by RIA Novosti.

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