// Zara owner Inditex has sold its Russian stores to UAE-based Daher Group
// Inditex was one of the biggest western retailers in Russia with more than 500 stores
Zara owner Inditex is the latest retailer to make their exit from Russia permanent after it agreed to sell its stores in Russia to UAE-based Daher Group.
With more than 500 stores in the country, Inditex was one of the biggest western retail giants to close their Russian business in the wake of its invasion of Ukraine.
The sale of its stores to Daher Group, which runs retail company Azadea that has had a partnership with Zara in the Middle East since 1998, includes the transfer of most store lease contracts and will preserve a “substantial number” of jobs, Reuters reported.
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Daher Group is based in the UAE, which the Kremlin considers to be a friendly country whose companies are encouraged to trade with Russia.
Inditex had made a €216 million provision for the wind down the Russian business which it said “substantially covers the impact of the group’s cessation of activity”.
Despite its exit, Inditex did not rule out returning to Russia if circumstances change.
Inditex is not the only retailer that has permanently pulled out of Russia. Rival H&M revealed in July that it would wind down its Russian business in July while Ikea said in August it would liquidate its operations in the country.
