Rumor that Russian domestic shopping company will split

RUSSIA / FSU POLITICS - In Brief 10 Jul 2019 by Alex Teddy

Two years ago Sberbank and Yandex formed a partnership to promote e-commerce. They created an online market called Beru. Their platform for buying imported goods is called Bringly. Sberbank now considers this a failure but the decision to terminate the partnership is not yet final. In August 2017 Yandex and Sberbank created this partnership with each taking 45% of the shares. Beru has not been very successful making only USD 15 million in October 2018. In that month rival Ozon made USD 667 million.The Bell reports that Sberbank is thinking about buying another e-commerce platform such as Avito or Ozon. The bank is looking for a partner in this venture. Avito and Ozon will both be hard to buy. Naspers Foundation (which is South African) owns most of Avito and is not keen to sell. Whereas Ozon's shares are mostly owned by Baring Vostok and Sistema. Sberbank would have to make a very attractive offer to get anything. Alibaba (the Chinese e-commerce behemoth) is making inroads into the Russian market. The great majority of articles ordered online are of Chinese manufacture. It will be hard for Sberbank to compete with this. It is true that Alibaba allows Chinese consumers to purchase Russians goods but they seldom do so.

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