Swedish furniture business IKEA has sold its Russian factory in Veliky Novgorod to Invest Plus LLC, a special purpose vehicle controlled by Vadim Osipov, the CEO and co-owner of St. Petersburg-based Slotex Group.

The terms or details of the deal were not disclosed, although Slotex said that the acquisition was IKEA’s “largest and most attractive asset” and has two specialisations that are “extremely in-demand on the domestic market”, which are laminated particle board and cabinet furniture.

The factory, which was built in 2016 and produces more than seven million cabinets and kitchen furniture units per year, will restart production in the coming months, with Slotex also stating that workers will be retained for at least 12 months.

“We are interested in resuming operations as soon as possible. Our goal is to return the products of the Novgorod factory to the Russian furniture market as soon as possible,” a statement said.

Furthermore, IKEA’s factories in Leningrad and Kirov regions have been acquired by Luzales LLC, a lumber producer based in Syktyvkar.

IKEA stopped all activity in Russia after the war in Ukraine began back in February last year. The retailer resumed online sales last summer, while it also still operates a number of shopping malls in Russia, although it is understood the company is seeking buyers for these 14 locations.