Western companies continue to terminate their operations in Russia one by one. Since the start of the Russia-Ukraine war, many companies from almost every sector, from textiles to energy, from food to automotive, have announced that they have withdrawn from Russia.
Among these companies, the world-famous automotive company Mercedes and the largest ready-made clothing company Inditex also participated.
The Russian Ministry of Industry and Trade announced that the German company Mercedes-Benz has transferred all its assets in Russia to the Russian company Avtodom. Mercedes stopped production in Russia in March. In Russia, previously the assets of Renault and Nissan companies were transferred to the Russian government.
Withdrawn from its second largest market
Inditex, which includes companies such as Zara, Pull&Bear, Massimo Dutti, Berschka, Stradivarius and Oysho, announced that they have agreed to sell their Russian leg to the United Arab Emirates-based Daher Group and withdraw from the country.
In the statement made by the Spain-based company, it was reported that Daher will take over most of the Inditex store rental contracts.
Inditex expects its revenues in the first half of the year to cover the costs of exiting Russia. In a statement made in June, the company stated that the cost of closing its operations in Russia and Ukraine would be 216 million euros .
Inditex closed all 502 stores in Russia in March and stopped online sales. Russia was Inditex’s second largest market.