Alibaba Cedes Control In Russia Unit To Form New Joint Venture


VLADIVOSTOK, Russia – China’s largest e-commerce firm, Alibaba Group Holding Ltd, has ceded control of its Russian business to form a new venture with a state fund and two technology firms, hoping that access to their consumer base with help boost its development.

Alibaba will own 48 percent of AliExpress Russia as a result of the deal signed with Russian Direct Investment Fund, mobile operator Megafon and internet group during Russia’s Eastern Economic Forum on Tuesday.

The three Russian entities will have a combined 52 percent stake in the e-commerce platform after contributing cash, shares and other assets.

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