Yandex N.V., the Dutch parent company of the Russian internet behemoth, is selling its final Russian operations at a severe discount due to geopolitical constraints from Russia’s invasion of Ukraine two years ago.
The sale of all Yandex N.V. businesses in Russia and a few neighboring markets will total 475 billion rubles ($5.2 billion), or half of its market capitalization as of the average share price, in the three months ending January 31, 2024. The Russian Government requires a “mandatory discount” of at least 50% on any sale of Russian assets by parent businesses established in “unfriendly” nations. As a member of an EU union that punishes Russia, the Netherlands is “unfriendly.”.
“Russian Google”
Yandex was formed in 1997 and became renowned as “The Google of Russia” since it offered search, e-commerce, advertising, maps, transit, and more. Yandex’s core market was Russia, but it went public on the Nasdaq in 2011 through a Dutch holding company, Yandex N.V., and then on the Moscow Exchange three years later. 
Yandex’s market worth peaked at $31 billion in November 2021. Yandex’s shares plummeted when Russia invaded Ukraine, prompting the Nasdaq to pause trade before delisting Yandex and many other Russian-affiliated firms last March.
Today, Yandex N.V., the parent holding firm, is selling its remaining Russian assets. Many Western corporations halted operations in Russia owing to sanctions, and Yandex CEO and founder Arkady Volozh was driven out after being put on an EU sanctions list.
Yandex has now sold its news service to a rival with deep links to the Russian state and announced intentions for a corporate restructuring to dissociate itself from its Russian roots. Yandex had previously announced it would rebrand its Dutch holding company, but after this sale, Yandex N.V. would no longer use the Yandex brand, which the new Russian owners will keep.
“We expect that our international businesses will develop their own branding going forward,” Yandex stated in a news statement. “We will seek shareholder approval to change YNV’s legal name in due course.”
Consortium
Yandex N.V. would receive “at least” 230 billion rubles ($2.5 billion) in cash in Chinese Yuan (CNH) because the purchasers, all Russians, cannot deal in dollars or euros.
Yandex claims a consortium led by top management from its Russian operations would supply some of the acquisition funds through a special-purpose limited liability company named “FMP.” Yandex lists Argonaut as a closed-end mutual investment combined fund owned by Russian oil company PJSC Lukoil; “Infinity Management,” a special purpose joint stock company owned by venture capitalist and entrepreneur Alexander Chachava; “IT.Elaboration,” owned by Pavel Prass, CEO of investment manager Infinitum Asset Services; and “Meridian-Servis,” a
Yandex N.V. is selling companies that account for “more than 95%” of the Yandex Group’s sales for the first nine months of 2023, as well as its assets and personnel numbers. Yandex N.V. will have four early-stage technology companies as its “non-Russian assets” after this purchase. These include Avride, Nebius AI, Toloka AI, and TripleTen, an edtech platform.
Meanwhile, Yandex N.V. will own a Finnish data center and invest in other technological startups.
Yandex N.V. will sell a 68% portion of the Russian operations in the first half of 2024 in cash and shares in the Dutch corporation. The agreement is still subject to regulatory and shareholder approval. The second stage should close within seven weeks of the first.
The company wants to utilize some of its selling revenues to expand its other companies and return them to shareholders.
Since February 2022, Yandex and our team have encountered incredible obstacles. We think we have discovered the greatest option for our shareholders, teams, and users in these unique circumstances,” said Yandex N.V. chairman John Boynton in a press release. “The proposed transaction will allow shareholders to recover some value for the businesses we are divesting, unlock new growth potential for the international businesses we will retain, and allow the divested businesses to operate under new ownership.”
