Deals

Alibaba Sets Up $2 Billion Russia Venture With Kremlin Help

Chinese internet giant seeks to expand in Russian e-commerce
Jack Ma flew to Putin’s forum in Vladivostok to back the deal

How Alibaba's Jack Ma Went From KFC Reject to Asia's Richest Man

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By Ilya Khrennikov and Dina Khrennikova

September 11, 2018 at 7:35 AM UTC

Updated on

September 11, 2018 at 11:55 AM UTC

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Alibaba Group Holding Ltd. is setting up a $2 billion joint venture with billionaire Alisher Usmanov’s internet services firm Mail.ru Group Ltd. to strengthen the Chinese company’s foothold in Russian e-commerce.

Asia’s most valuable company signed an accord Tuesday with Mail.ru to merge their online marketplaces in the nation of more than 140 million people. The deal is backed by the Kremlin through the Russian Direct Investment Fund and the local investors will collectively control the new business. Mail.ru’s global depository receipts traded in London jumped as much as 12 percent.