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Updated December 25th, 2023 at 22:35 IST

'Russia's Google' Yandex's restructuring hangs fire

The tech firm was seen to be a global business set-up until the Russia-Ukraine war broke out.

Business Desk
Yandex
Yandex | Image:Unsplash
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Nasdaq-listed Russian tech company Yandex's restructuring is expected to be postponed until early 2024, people privy with the negotiations have said. The completion of the listing now hangs in balance. 

Dubbed as  "Russia's Google", the technology firm Yandex, was one of the few Russian companies with the potential to become a global business until Moscow sent troops into Ukraine in February 2022.

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A year on, Yandex and the Kremlin have been engaged in negotiations to try spin off Yandex's Russian businesses from its Dutch parent company, Yandex NV.

Yandex NV, a Dutch holding company has been working on a restructuring for months, as it tries to ensure some of its businesses retain access to Western markets despite sanctions against Moscow over the conflict in Ukraine.

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The deal was initially expected to be reached in December. Any deal ultimately requires approval from shareholders and Russia's government.

Yandex declined to comment on the restructuring process.

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The company is aiming to recoup shareholder funds through the sale of its main revenue-generating Russian businesses, such as its search and ride-hailing operations. It then plans to develop four other business lines internationally.

One of the sources, speaking on condition of anonymity because the information is not public, said the company had made "great progress" and handed all the documents to lawyers, but it was not clear the work would be completed this month.

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Another source said the goal now was to complete the deal in the first quarter, while a third source said it was expected in "the beginning of 2024".

On Monday, Russia's central bank registered an issuance of ordinary and preferred shares of a new company called MKAO Yandex, which is being set up in the city of Kaliningrad as part of the restructuring. 

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(With Reuters inputs) 

 

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Published December 25th, 2023 at 22:34 IST

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