Zara-owner Inditex obtains approval to sell business in Russia, 05 April 2023

Inditex, owner of the Zara clothing chain, has received permission from Russia to sell its business in the country that was once its second-biggest market by number of stores.

Daher Group of the United Arab Emirates will be acquiring the business from the world’s biggest fashion retailer. Russia’s commission on foreign investments, the approval of which every western company exiting the country requires, authorised the sale at the end of March. The decision was confirmed on state television on Wednesday.

It comes five months after Inditex announced a preliminary agreement with Daher and more than a year after it suspended its Russian operations following Moscow’s full-scale invasion of Ukraine, highlighting the protracted journey many foreign businesses have faced as they leave the country...

The transaction amount was not disclosed and the sale is yet to take place, Russia’s corporate registrar shows.

Since last year, companies from so-called unfriendly countries have required the approval of Russia’s commission on foreign investments to sell their assets there. Basic approval criteria include selling at a minimum of 50 per cent discount and making a direct “voluntary contribution” to the Russian state.