China-based e-commerce giant Alibaba has set up a joint venture, AliExpress Russia,  with the Russian Direct Investment Fund, mobile operator Megafon and internet group Mail.ru.

With a collective control over the joint venture, the parties will inject new capital, strategic assets, leadership, resources and expertise to accelerate the development of Russia’s rapidly growing digital economy.

The deal values the new joint venture at roughly $2 billion.

Upon completion of the transaction, Alibaba will own 48 percent of AliExpress Russia, while MegaFon will have 24 percent. In addition, Mail.Ru will own 15 percent and Russian sovereign wealth fund will have 13 percent stake.