Support The Moscow Times!

Chinese E-Commerce Giant Alibaba Opens Russian Company

Chinese e-commerce giant Alibaba Group has registered a Russian subsidiary as it expands its hold over Russia's fast-growing online shopping market, newspaper Kommersant reported Tuesday.

A Russian company named Alibaba.com was registered on May 15, Kommersant reported. Mark Zavadsky, business development director for AliExpress in Russia and the CIS, confirmed the company's registration to Kommersant.

“Alibaba Group founded a new company in Russia in order to further expand our business and support our partners, and also to facilitate cooperation with the Russian authorities,” Zavadsky told the paper.

Founded in 1999, Alibaba Group specializes in online retail and services for the e-commerce industry. The company broke records late last year when it raised $25 billion in an initial public offering on the New York Stock Exchange, the biggest IPO in history.

Its online retailer AliExpress, which links Chinese businesses to consumers worldwide, sold more in Russia than any other foreign e-commerce company in 2014, a report last year by industry watcher East-West Digital News (EWDN) found.

Chinese retailers have been steadily growing their share of Russia's e-commerce market in recent years. About 70 percent of packages shipped to Russians from abroad last year came from China, with cheap Chinese goods taking about 50 percent of foreign e-commerce companies' total sales in Russia, according to EWDN.

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

Please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world's largest country.