“The Google of Russia” faced tumultuous times following Russia’s invasion of Ukraine

Courtesy: Realtime Global Data Intelligence Platform

MOSCOW: Yandex N.V., the Dutch parent company of the renowned Russian internet giant, is poised to sell its last remaining Russian businesses for approximately $5.2 billion, marking a significant markdown from its market capitalization due to regulatory pressures enforced by the Russian government.

The sale encompasses all Yandex N.V. businesses in Russia and neighboring markets, valued at around 475 billion rubles. This drastic reduction in price stems from a rule imposed by the Russian government, mandating a minimum 50% discount on the sale of Russian assets by parent companies incorporated in nations deemed “unfriendly” by Russia, which includes the Netherlands.

Yandex, often referred to as “The Google of Russia,” faced tumultuous times following Russia’s invasion of Ukraine, resulting in a sharp decline in its market value and the delisting of its shares from the Nasdaq. The company’s CEO and founder, Arkady Volozh, was also impacted by sanctions imposed by the European Union.

The sale represents a strategic move by Yandex to divest its Russian assets amidst geopolitical uncertainties and sanctions. The transaction, led by a consortium of senior managers from Yandex’s Russian businesses and other investors, will reshape the company’s portfolio, retaining only early-stage technology ventures and international assets.