Russia’s Megafon to Create Fintech-Oriented Joint Venture with Gazprombank, Rostec

Russia’s Megafon will partner with Gazprombank, Rostec, and USM to create a joint venture that will be used to deploy fintech projects.

Megafon, the second largest mobile phone operator in Russia,announcedon Tuesday that it would initiate a joint venture with Gazprombank, Rostec - the state-backed manufacturer of defense technology products, and USM Holdings, to deploy digital projects, including those related to blockchain. The new company, called MF Technology, will help the partnering companies unite their expertise in various industries, like telecommunications, IT, financial services and high-tech industries, to enter new markets with innovative products.

Morgan Stanley & Co. International submitted a financial report on the fairness of the deal price to Megafon’s Board of Directors.

“Jointly with its partners, Megafon plans to implement a number of digital projects, including creating software products to digitalize the operations of major companies and enterprises, and developing blockchain-based solutions,” the release says.

One of the most important projects of the partnering companies is the development of a digital financial platform that will be used by the parties to provide high-tech services related to payments, credits, and other digital products. For this purpose, MegaFon, Mail.Ru Group, USM, and Gazprombank plan to create a company called Digital JV (DJV).

Last year, Megafon and Megafon Labstook partin a successful blockchain project led by IBM and Russia’s largest bank, Sberbank.