Inditex sells Russian assets to Middle Eastern Daher Group. Stocksak

© Stocksak. FILEPHOTO: A man walks by a Zara shop in central Moscow, Russia, March 15, 2022. REUTERS/Maxim Shemetov

MADRID (Stocksak) -Zara owner Inditex (BME:). The Russian-based Daher Group has purchased its stores in Russia, but the Spanish clothing company stated on Tuesday that it would not rule out returning to Russia if circumstances changed.

After Moscow’s invasion in Ukraine on February 24, and subsequent Western sanctions, Inditex closed over 500 Russian stores in March.

The Kremlin views the United Arab Emirates and other Gulf and Asian nations to be friendly countries and encourages Russian companies to do business with Russia.

Inditex said that the terms of the deal will allow a “substantial amount” of jobs to remain, despite not disclosing them. The transaction also includes the transfer of most store leasing contracts.

Inditex stated that the provision of 216 million euros for Russia and Ukraine in the first half 2022 “substantially covers” the impact of the group’s cessation in Russian Federation.

The Spanish firm stated that it could adapt its premises to accommodate Daher’s operations, provided landlords consent. Stocksak was informed by a company source that Daher Group is Emirati.

Lebanese Daher runs the Beirut-based retail business Azadea. The company has been in partnership with Zara Middle East since 1998. They also work with other major brands around the world.

Mango, another Spanish fashion retailer said this year that they were in talks with Russian partners to transfer the shops it had temporarily closed back in March.

Zara’s main global rival H&M said in July it would wind down its business in Russia.

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