Dutch parent company Yandex N.V. has completed the first phase of the divestment of its Russia-based businesses. The company had agreed to sell its Russian assets to a consortium of Russian investors for 475 billion rubles, ending years of Western investment in Russia’s tech industry. The Kremlin welcomed the deal, which included the sale of 68% of the assets to an investment fund called Consortium.First, with the ultimate beneficial owner being Russian energy multinational Lukoil.
Yandex N.V. plans to sell the remaining 28% of the assets in the second phase of the divestment, expected to take place in early July. After the second closing, Yandex N.V. will have no interest in the Russian businesses, which currently make up 95% of its total revenues. The Dutch holding company will retain a small segment of Yandex’s international-focused business lines, including AI cloud and data platforms, as well as self-driving car technology. As part of the sale, four Russian board members have resigned, with replacements expected to be proposed.
Yandex N.V. has applied to delist from the Moscow Exchange by July 10 and hopes that Nasdaq will resume trading its shares, although it provides no assurance. The company’s decision to divest from its Russian businesses comes amid the imposition of steep exit taxes on Western companies by the Kremlin following the full-scale invasion of Ukraine. The completion of the first phase of the divestment marks a significant shift in Yandex N.V.’s ownership structure and future direction.
The sale of Yandex N.V.’s Russian assets to Russian investors reflects a changing landscape in the world of tech investments, particularly in light of geopolitical tensions. Western companies are facing increasing challenges in operating within Russia due to sanctions and political conditions. The divestment of Yandex N.V.’s Russian businesses signifies a strategic decision to reallocate resources and focus on other international business lines that are not impacted by geopolitical conflicts.
As Yandex NV completes the first phase of divesting from its Russia-based businesses, the implications for the Russian tech industry and foreign investors remain to be seen. The sale to a consortium of Russian investors represents a shift in ownership and control over key tech assets in the country. The decision to delist from the Moscow Exchange and the uncertainty surrounding Nasdaq’s trading of Yandex NV’s shares signal a period of transition for the company as it navigates changing geopolitical dynamics.
In conclusion, Yandex N.V.’s divestment from its Russian businesses marks a significant milestone in the company’s history and reflects broader changes in the tech investment landscape. The decision to sell to Russian investors, delist from the Moscow Exchange, and potentially resume trading on Nasdaq underscores the complexity of operating in a volatile geopolitical environment. The impacts of these actions on Yandex N.V.’s future growth and strategic direction will be closely monitored by investors and industry stakeholders as the company adjusts to new realities in the global tech sector.
