Russian lender Sberbank has announced plans to form an e-commerce joint venture with local search engine Yandex on the Yandex.Market platform.

Both the parties will be equal partners in the joint venture, with up to 10% of its shares to be allocated for an equity incentive pool for Yandex.Market management and staff.

Yandex.Market will retain its current management team, including Maxim Grishakov as the CEO and member of the board. The board of Yandex.Market will also comprise a further three representatives from Yandex and three from Sberbank.

At the same time, the bank will invest RUB30bn (around $500m) into Yandex.Market, valuing it at RUB60bn ($1bn).

“This proposed joint venture will create new benefits for our users. Sberbank’s banking and payments infrastructure will help us develop simple and secure payment solutions on the Yandex.Market platform and will allow us to introduce new features, such as consumer lending,” Grishakov stated.

The deal is expected to be wrapped up by the end of 2017, subject to Sberbank’s due diligence and regulatory approval.

Sberbank of Russia president and chairman of the board and Yandex member of the board of directors Herman Gref said: “This partnership opens up new opportunities for Russian producers, eCommerce players, and small and medium businesses, unlocks opportunities for Russian exports abroad, and creates a new channel for international participants in the market.”