Moscow approves sale of Inditex’s Russian business to UAE buyer

MOSCOW, April 5 (Reuters) – The Russian government said on Wednesday it had approved a deal to buy Spain’s Inditex (ITX.MC) Selling its Russian business to buyers in the UAE, some of its former stores will reopen under new brands in April and May.

Inditex closed more than 500 of its stores in Russia after Moscow sent troops into Ukraine and agreed to sell them in October, though small imports and online sellers are helping to keep the Inditex brand live in russia.

Inditex did not immediately respond to a request for comment.

The company previously said it had agreed to transfer 245 of its 514 stores to the UAE-based Daher Group, while others would close. It said the new brand opened in Russia would be completely different from the Inditex brand.

The exit of Western companies in Russia has been complicated because deals involving companies from so-called unfriendly countries (those that impose sanctions on Russia) require government committee approval. Companies often insert buyback clauses that one day they may come back.

Russia’s industry and trade ministry said a government committee overseeing foreign investment had approved on March 30 the sale of 100% of Inditex’s Russian subsidiary Novaya Moda.

“The buyer of Inditex’s operations in Russia (including Zara stores) is Fashion and More Management DMCC, which has an office in one of the friendly countries,” the ministry said.

Fashion and More Management DMCC was registered with the Registrar of Companies at DMCC (Dubai Multi Commodities Centre) on January 25th. Its License Administrator is Hassan Ghaleb Daher.

“The transaction price was not disclosed. Inditex Group will hand over to new owners all the retail outlets it currently holds in Russia. The stores will open under new names: MAAG, DUB, ECRU, VILET,” the ministry said. “The series with the new label has already been seeded and shipped to Russia.”

Reporting by Alexander Marrow, Olga Popova and Gleb Stolyarov; Additional reporting by Lisa Barrington in Dubai; Editing by Jane Merriman

Our standards: Thomson Reuters Trust Principles.