- Yandex’s parent company, Yandex N.V. has concerns and announces that it has reviewed the options to cut ties with the country.
- Yandex’s parent company wants to operate its businesses of self-driving technologies, cloud computing, data labeling, and ed-tech outside of Russia.
- The exit would not be easy and face some serious challenges as it requires Moscow’s and Yandex’s shareholders’ approval.
The Dutch-based parent company of Yandex, Yandex N.V. unveiled a new strategic process for its Russian-based businesses due to the ongoing war between Russia and Ukraine. Yandex defined these options as developing some of its international divisions independently from Russia and divesting ownership and control of all other businesses in the Yandex Group.
Competing with Western equivalents
Russian search and tech giant Yandex has been working hard to compete with its Western equivalents. The company has developed its own smart devices, self-driving cars, and food delivery and ride-sharing services, among other products. However, the sanctions against its home country after the invasion of Ukraine have made it very difficult for the tech company to keep developing and improving its projects. That is why Yandex’s parent firm, Yandex N.V. which is registered in Amsterdam, has been looking for options to sell the businesses in Russia and cut ties with its homeland.
The company announces that its board of directors has made decisions in light of the current geopolitical environment, to ensure the sustainable development and success of the group’s diverse portfolio of businesses over the longer term. The board suggests developing certain services which are self-driving technologies, cloud computing, data labeling, and ed-tech outside of Russia. The board of directors also wants to sell and transfer search and advertising, mobility, e-commerce, food delivery, delivery, entertainment services, and others in Russia and international markets. John Boynton, Chairman of Yandex Board of Directors stated;
« These are exceptionally challenging times. Please be assured that as we analyze different strategic options, we will do everything possible to protect value for our public shareholders and preserve opportunities for the 20,000 employees who have made Yandex one of Europe’s most successful technology companies. »
The process will not be smooth
However, the transition will not be smooth as it needs Moscow’s approval to transfer technology licenses outside the country. The company’s shareholders also must agree on these strategic plans. Yandex N.V. is aware of those challenges and says that the process is at a preliminary stage currently. And it is not certain whether executing these plans will be successful.
Yandex’s business was once applauded as an extraordinary Russian business success story. Since the invasion of Ukraine, its businesses have struggled and reportedly the price of the company’s New York-listed shares lost more than $20 billion in value almost after the war. Before the Ukraine invasion, it employed more than 18,000 people and was worth more than $31 billion. Yandex was often referred to as the “Google of Russia.” Following Russia’s Ukraine invasion, thousands of Yandex employees have left Russia.