Gap to Expand in Russia

San Francisco Gap Inc. said it will open Gap and Banana Republic stores in Russia through a franchising agreement with Fiba Holding A.S.

Financial terms were undisclosed.

Under the agreement, Fiba Holding will open Gap and Banana Republic stores over the next five years. Gap stores are expected to open for the 2008 holiday season, and Banana Republic stores are expected to open for the 2009 holiday season.

Gap has 80 franchise stores around the world. Fiba Holding A.S. currently operates franchise stores for the Gap and Banana Republic brands in Turkey.