Russian e-commerce giant RWB plans VTB alliance
Strategic Partnership Between RWB and VTB
MOSCOW, May 26 (Reuters) - Leading Russian e-commerce group RWB announced plans for an alliance with the country's second-largest bank VTB on Tuesday, marking the first such tie-up in Russia.
Details of the Alliance
• VTB is set to acquire a 5% stake in RWB's WB Bank, with an option to increase its stake. WB Bank will receive access to VTB's vast financial infrastructure.
• RWB said it will develop VTB's retail business by bringing its technology, IT solutions, AI and digital services know-how to traditional banking products.
• The deal is widely expected to be signed during the St Petersburg economic forum next week.
Background and Market Context
• Russian banks last year accused e-commerce companies of unfair competition practices due to the discounts offered to customers using cards issued by their affiliated banks.
• The Russian e-commerce sector experienced explosive growth during the COVID-19 pandemic and the years of the military operation in Ukraine, helping tens of thousands of small and medium-sized companies reach customers across Russia.
Industry Impact and Competitors
• Many Russian officials and top bankers have said that e-commerce platforms have become an important driver of economic growth, which is slowing due to high interest rates, Western sanctions and a strong rouble.
• Other firms, including Russia's largest lender Sberbank and technology giant Yandex, have tried to enter the market with their own e-commerce subsidiaries.
Formation of RWB
• RWB was created through a merger in 2024 which received a blessing from the Kremlin, which is seeking more control over the booming e-commerce sector.
(Reporting by Elena Fabrichnaya; Writing by Gleb Bryanski; Editing by Alexander Smith)
