Inditex Rules Out Return to Russia Amid Broader Multinational Retrenchment

THE WHAT?  Zara owner Inditex has confirmed it has no plans to return to the Russian market under current geopolitical conditions, highlighting broader uncertainty for multinationals—particularly those in beauty and personal care—still weighing long-term exit or re-entry strategies.

THE DETAILS Inditex CEO Óscar García Maceiras stated that the company would only consider re-entering Russia under a “more favourable geopolitical environment,” making it clear that such conditions are “certainly not” in place. The statement follows reports that Maag, a new brand created by the buyer of Inditex’s former Russian operations, is selling near-identical products using the same suppliers. García Maceiras attributed similarities to global trends and emphasized that Inditex does not use exclusive suppliers.

Russia’s deputy finance minister confirmed that no Western companies have requested to return to the Russian market. Meanwhile, new laws may allow local businesses to void earlier buyback agreements with multinationals and seize assets, including recent nationalisations like Domodedovo airport. In 2023, Inditex sold its Russian operations—once its largest market outside Spain—to franchise partners in the Middle East. The deal included a clause allowing the original owner to return via a franchise model, though this option remains unused.

THE WHY? The Inditex case underscores how brand control, supply chain integrity, and legal protections remain unresolved for cosmetics and personal care brands that exited Russia post-2022. While the market was once lucrative for many, the legal and political risks of return continue to mount.

Source: FT

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