IKEA has pledged to pay $6 million euros ($9.9 million) into a hardship fund for victims of the East German dictatorship after admitting some of its suppliers used political prisoners as forced labourers.

The Swedish furniture giant handed over a declaration of intent to Evelyn Zupke,  the top official in charge of compensations for the injustices of the former East German communist government.

Ms Zupke's office said in a statement the declaration was the result of "close exchanges over several years" between IKEA, the victims' group UOKG and Ms Zupke. 

She became the government commissioner on the issue in 2021.

"For me, IKEA's commitment to supporting the hardship fund is an expression of a responsible approach to the dark chapters of the company's history," Ms Zupke said.

IKEA admitted some of its suppliers had used political prisoners in East Germany as forced labourers in the late 1970s and early 1980s, following an independent investigation in 2012.

IKEA's head in Germany Walter Kadnar said they "deeply regret that products for IKEA were also produced by political prisoners".

In 2021, Germany's three-way coalition government pledged to establish a hardship fund for victims of crimes committed under the East German government before German unification in 1990.

The German parliament is set to vote on the establishment of the fund in the coming weeks.

Mr Kadnar said IKEA had long ago assured the people affected that it would atone for the mistreatment they faced.

"We therefore welcome the implementation of the hardship fund and are pleased to be able to keep our promise," he said.

AP