Economy· Business· Commercial & Professional Services

Alibaba and Russian firms join hands to develop local Alipay

minutes 2018/09/12 08:52:26
China's Financial News, China News,  Alipay, Russian

Sep 12, 2018 (China Knowledge) - Russian firms eager to learn from the Chinese e-commerce industry have signed several deals with China's Alibaba. The partner companies include Russia's internet group, Russian Direct Investment Fund (RDIF), the Sovereign wealth fund of Russia, and country's mobile operator MegaFon.

Alibaba will help integrate Russia's key consumer internet and e-commerce platforms to develop an ecosystem of e-commerce along the lines of Alipay. The new system will enable Russian customers to make online payment and socialize, play games, and communicate at a single platform, entailing growth of Russia’s digital economy.

China knowledge had earlier reported about a joint venture of Russian companies and Alibaba. According to the report, Mail.Ru Group’s online businesses reach out to 90% of Russian internet users every month, and it operates two largest Russian language social networks, VKontakte and Odnoklassniki. Such an advantage will prove decisive for gaining access of millions of customers in Russian market.

The deal was signed at the Eastern Economic Forum (EEF) being held in Vladivostok, Russia the JV kicked off. It will be formalised next year.

Alibaba will not only contribute to ALIExpress Russia but will also pump money into the project, according to statement. The focus will be to create an unparallel proposition for consumers, businessman and internet users across Russia and CIS. In order to gain enhanced market access Alibaba will own 48% of AliExpress Russia with the Russian firms taking 52%. 

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