Alibaba Group Holding Ltd. announced Oct. 9 that it closed the transaction that will enable the company to form an e-commerce joint venture in Russia.
The joint venture involves Alibaba's AliExpress Russia business unit as well as internet company Mail.ru Group Ltd., mobile operator MegaFon OJSC and the Russian Direct Investment Fund.
Through the deal, which received regulatory approval in June, the companies aim to create a one-stop platform for e-commerce, social media and gaming activities. The online destination will provide small and medium-sized businesses with access to both local and international markets.
Mail.ru Group CEO Boris Dobrodeev is the chairman of the joint venture's board, while AliExpress Russia Head Liu Wei and Mail.ru Group First Deputy CEO Dmitry Sergeev are co-CEOs of the new entity.
In addition, the joint venture and Mail.ru Group are expected to enter into a strategic cooperation agreement, under which the joint venture will promote its services on the internet company's platforms.
