Alibaba is partnering with two Russian companies on an eCommerce venture as it looks to form its digital silk road across Eurasia. According to the Financial Times, sources reported that Alibaba is close to finalizing a partnership with Russian internet company Mail.ru and sovereign wealth fund Russian Direct Investment Fund (RDIF).
“This is an important investment and it is very much part of the digital silk road,” said one Russian participant in the deal.
The partnership has been in the works for a while. Last year, Kirill Dmitriev, RDIF’s head, told Russian President Vladimir Putin that it would soon announce an “investment in a number of our internet platforms with the aim of expanding their operations abroad, as well as investment with Alibaba in internet logistics infrastructure in Russia.”
Alibaba’s Jack Ma has made Russia a priority for his company, even sharing a stage with Putin last year. “We think Alibaba should join forces in developing Russia,” Ma said at the time.
Alibaba opened its first office in Russia in 2015, and has focused on the country as a key growth market. Though eCommerce in Russia is behind the rest of Europe, more than half of its 140 million citizens use the internet every day. AliExpress, Alibaba’s cross-border eCommerce business, is the most visited site in Russia.
Full Content: Financial Times
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