Inditex plans to sell its stores in Russia to the UAE-based Daher Group.

The terms of the deal will allow a substantial number of jobs to be preserved as the transaction includes the transfer of most store lease contracts. Inditex closed its over 500 stores in Russia in March following the invasion of Ukraine and subsequent western sanctions.

The Lebanese Daher family runs the Beirut-headquartered retail company Azadea, which has had a partnership with Zara in the Middle East since 1998 and works with other major global brands.The Kremlin considers the United Arab Emirates and a number of other Gulf and Asian nations as friendly countries whose companies are encouraged to do business in Russia. Inditex added that the 216 million euro provision for Russia and Ukraine made in the first half of 2022 substantially covers the impact of the group's cessation of activity in the Russian Federation.

Days after the war began, Inditex decided to close its 502 shops in Russia, its second largest market after Spain, with more than 9,000 employees, and to suspend online sales in the country as a result of the Russian invasion of Ukraine. Of the 502 stores, 86 were Zara shops.Russia accounts for around eight per cent of the group's global net operating income.