Zara parent Inditex agrees to sell its Russia business to Middle Eastern Daher Group

Spanish clothing retailer Inditex, parent to Zara, said Tuesday it has reached an agreement to sell its Russia business to Daher Group. The move comes after it halted operations in Russia on March 5 in protest at that country’s unprovoked invasion of neighboring Ukraine. “The terms of the transaction, subject to government approval, will enable the preservation of a substantial number of jobs generated by Inditex Group in Russia, as it includes the transfer of most of the lease contracts related to stores,” the company said in a statement. The stores will carry brands owned by Daher, it added. The company booked a charge of 216 million euros ($215.3 million) in the first quarter relating to Russia and Ukraine and said Tuesday that the costs of terminating its Russia business is fully covered. The move comes after many international companies and brands have pulled out of Russia. Daher Group is based in the United Arab Emirates, according to Reuters.