Metro, IKEA chiefs may meet Sharma in Russia this week

"Sharma's meeting with Olaf Koch, CEO and Chairman of the Management Board of Metro AG is scheduled tomorrow in St. Petersburg. IKEA CEO & President M Ohlsson may meet him on Friday," an official said.

The minister is in Russia for a three-day visit to attend St Petersburg International Economic Forum 2012.

The Scandinavian furniture retailer IKEA's CEO Ohlsson, who had met Sharma here in February, has expressed his willingness to be involved in strengthening Indian SMEs.

IKEA, who is waiting to set up shop in India on its own for a long time, has some issues with the clause of 30% local sourcing in single-brand retail.

The government had notified opening of 100% FDI in single brand retail with a clause of 30% mandatory sourcing from Indian SMEs.

German wholesale giant Metro Group has currently nine cash and carry stores in India. Global retail giants including Walmart are keen to set up multi-brand retail stores in India.

Following strong protest from its key ally Trinamool Congress, the UPA government has suspended its decision to allow 51% FDI in the politically sensitive multi-brand retail sector.

Besides, Sharma would meet Russian Industry & Trade Minister Denis Manturov to discuss ways to enhance bilateral trade, the official said.

"Protecting investments, strengthening existing economic and trade relations, and achieving both countries’ strategic goals are just a few of the issues on the Russia-India commercial agenda," the official said, adding the ministers' would also discuss areas of collaboration in sectors like IT, telecommunications and energy.

The bilateral trade between India and Russia stood at USD 5.17 billion in 2010-11.