The German fashion house sold its Russian business two years after Russia invaded Ukraine.
German fashion house Hugo Boss has agreed with the Russian Federation’s ruling regime to sell its Russian business to wholesale partner Stockmann. This was reported by The Moscow Times in connection with a statement from the company.
Hugo Boss did not disclose the financial terms of the deal. However, it should be noted that the Kremlin requires foreign companies to sell their assets in Russia at a discount of at least 50%.
“As a result of the agreement, Hugo Boss is no longer in Russia,” the statement said.
According to Hugo Boss representatives, the sales still need to be approved by European regulators. It will finally be completed in the third quarter of 2024.
The Deputy Head of the Ministry of Industry and Trade of the Russian Federation, Viktor Evtukhov, said that one of the conditions of the agreement was the maintenance of all jobs at Hugo Boss.
The retailer’s stores are planned to open in the third quarter of 2024.
As we have already written, the Austrian Raiffeisen Bank International (RBI) expects that the European Central Bank will soon ask to accelerate the reduction of its business in Russia.
Source: korrespondent
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