RDIF and partners acquire 7.85% share in AliExpress Russia JV from Alibaba Group

Press release, 29.01.2021

Moscow, January 29, 2021 – The Russian Direct Investment Fund (RDIF, Russia’s sovereign wealth fund), alongside Mubadala Investment Company (UAE) and a number of leading sovereign wealth funds of the Middle East, announce completion of their joint investment in AliExpress Russia JV (AER JV) – the leading e-commerce company in Russia and CIS with the largest customer base.

Creation of AER JV was completed by RDIF and its partners – Alibaba Group, Megafon and Mail.ru Group – in October 2019.

As part of the AER JV creation RDIF and partners had secured the exclusive right to acquire 7.85% shares in the JV from Alibaba Group. Acquisition of shares under this option was completed on January 28, 2021.

The AliExpress Russia JV offers unmatched value proposition for merchants, consumers and internet users across Russia and the CIS and accelerates the development of Russia’s digital economy by leveraging and integrating the strength and expertise of all shareholders.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:

“Participation of our partners among the leading sovereign wealth funds of the Middle East in the acquisition of shares in AliExpress Russia is a testament to the high investment attractiveness of this joint venture, which, despite strong competition, maintains its strong lead on the cross-border e-commerce market, demonstrating rapid growth both in Russia and the CIS. The significant growth in e-commerce volumes, which is partially due to the coronavirus pandemic and changes in consumer preferences in favor of online shopping, allows us to predict further robust growth for AliExpress Russia. Going forward, we expect AliExpress Russia to emerge as one of the largest marketplaces in Europe.”

Faris Al Mazrui, Head of Mubadala’s Russia and CIS Investment Program, added:

“We are excited to have joined our partners to complete another investment in Russia’s digital economy. The socioeconomic effects of Covid-19 will continue to accelerate demand for e-commerce, making this transaction particularly timely. Mubadala has a long-term commitment to expand its portfolio in Russia by sourcing attractive investment opportunities that can deliver strong and sustainable returns.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 80 projects with foreign partners totaling more than RUB2 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 18 countries that total more than $40 bn. Further information can be found at rdif.ru

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi. Mubadala’s $232 billion (AED 853 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates. Headquartered in Abu Dhabi, Mubadala has offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing. For more information about Mubadala Investment Company, please visit: www.mubadala.com

For additional information contact:

Arseniy Palagin                                       Andrew Leach / Maria Shiryaevskaya
Russian Direct Investment Fund                          Hudson Sandler
Press Secretary                                                Tel: +44 (0) 20 7796 4133 
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru