VK, Alibaba, MegaFon, USM, RDIF joint venture in question

MOSCOW. Oct 28 (Interfax) - The formation of joint ventures between Russia's VK (formerly Mail.ru Group), MegaFon , USM and Russian Direct Investment Fund (RDIF) and China's Ant Group, a subsidiary of Alibaba is no longer likely in the initially agreed configuration, one of the parties to the preliminary agreement said.

The agreement to create a payments joint venture and financial services joint venture was signed in February 2021 and their formation was expected to be completed in November 2021.

However, as of September 30, 2021, VK "reassessed the probability of successful completion of the deal in the structure agreed and signed in February 2021 as currently not highly probable," the Russian Internet company said in its financial statement.

"Following this probability reassessment, the Group ceased to classify Money.Mail.Ru (LLC), VK Pay and InPlat as assets held for sale," VK said.

Nonetheless, the group intends to form a payments joint venture and financial services joint venture "in the foreseeable future, and is currently in active negotiations on the matter," VK said.