Phonevalley will be headquartered in Moscow and will collaborate with all Publicis Groupe agencies in the country.
Kirill Pozdnyakov, previously a director of Russian mobile marketing company Fresh-Media, is the business development director.
The Russian mobile market has a lot of potential, according to Alexandre Mars, chief executive of Phonevalley and head of mobile at Publicis Groupe.
Mars said: "With 80m mobile subscribers and 14m users of the mobile internet every month, we believe the Russian mobile market is fully mature to broaden its communications channels to mobile."
Publicis bought Phonevalley last year and has since helped it to expand from Europe to Asia and the US.
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