American fast-food restaurant chain KFC is transferring its Russian business to a local operator, and the Spanish fashion retailer that owns the chain Zara will sell its business in the country, the two multinationals said on October 25.
They become the latest in a string of western corporations to leave Russia since the start of its unprovoked invasion of Ukraine.
KFC's owner, Yum!Brands holding, said on October 25 that it had signed an agreement to sell all 70 KFC restaurants it owns in Russia, the operating system, and its franchise to Smart Services Ltd, which is run by Russian KFC franchisees Konstantin Kotov and Andrei Oskolkov.
The buyer will be responsible for rebranding the restaurants and retaining existing employees.
The Russian business daily Kommersant reported that the fast-food outlets will start operating under the Russian fast-food brand Rostic's.
There are about 1,000 KFC restaurants in Russia. Almost all of them are managed by independent owners under licensing or franchise agreements.
Spanish fashion retailer Inditex said it would sell its business in Russia to Daher group, which has prominent interests in the retail and real estate industry, Inditex said in a statement.
"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," it added.
Inditex, which owns Zara and other chains, halted its operations in Russia seven months ago, closing 502 stores that accounted for 10 percent of the company's sales.
Inditex said the sale of its business to Daher group "will mean the termination" of its operations in Russia.
Many Western companies have left Russia since Moscow invaded Ukraine on February 24.
Starbucks and McDonald's were among American food and beverage corporations to announce their exit, while French food conglomerate Danone said earlier this month that it was also selling most of its Russian operations.
Other major international corporations, including Swedish furniture giant IKEA, Danish toy company Lego, and U.S. jeans and clothing maker Levi's have announced closures and sales of their operations.