Drinks group Diageo has teamed up with Russian financial-industrial conglomerate Alfa Group and owner of the Smirnov vodka brand, in a joint venture that will allow Diageo to distribute Smirnov, Smirnoff and other Diageo brands in Russia.

As part of the agreement, which is subject to approval from Russian authorities, Diageo will pay Alfa Group $50m in return for a 75% stake in the joint venture.