Dutch sell shares in Yandex to Kremlin: an outcome of Western capital drain in Russia amid Ukraine conflict
5 February 2024 20:23, updated: 7 March 2024 09:14
Yandex is Russia's most used internet search engine, especially since the aggression against Ukraine. After the assault on the neighbouring country, the Kremlin repeatedly penalised Google - as per Russian authorities - for misinformation about the war. In August 2023, the tech giant announced its departure from Vladimir Putin's country.
The war and sanctions imposed on Russia have led to the draining of Western capital. In response, the Kremlin has been increasingly 'encouraging' companies to sell their factories to Russians, as happened with Volkswagen. And they're often sold for practically nothing.
On Monday (February 5), another significant sale took place. This time, the Kremlin indirectly took control of the Russian-Dutch company Yandex. Due to the 50% discount required by Russian authorities, the Dutch will receive $5.2 billion (roughly £3.94 billion).
What's behind the Kremlin's persistent interest in Yandex?
As a result of the transaction, the Yandex takeover predominantly includes the Russian company's management and a fund dependent on the oil giant Lukoil. However, the Russians can't use the company and the search engine's original name.
The Reuters agency emphasises in its reporting that Yandex always tried to portray itself as a firm independent of Kremlin influence. Notably, the regime has targeted the nationalisation of the 'Russian Google'.
"Yandex co-founder Arkady Volozh, who moved from Russia to Israel in 2014, branded Russia's invasion of Ukraine as 'barbaric' in August. This sparked demands from some in the Kremlin for the company's nationalisation" - writes Reuters, citing people 'familiar with the matter'.
The sale, pending regulatory authority's and shareholders' approval, will be completed in two stages. The first is expected to end in the first half of 2024, and the second within seven weeks - adds the agency.
