Following a cash injection by JCDecaux the company, which will be known as BigBoard BV, will be 60 per cent owned by the BigBoard Group SA and 40 per cent owned by JCDecaux.
The company will now begin acquisitions in both countries.
Through its advertising network BigBoard Group SA has more than 7,400 advertising faces in Ukraine, where it holds 20 per cent of the market. It also has 3,000 faces in Russia.
Jean-Franaois Decaux, the co-chief executive of JCDecaux, said: "Russia and Ukraine are currently two ad markets where it is possible to achieve more than 10 per cent growth year on year."