Arkady Volozh, a co-founder and chief executive of the Yandex group, is stepping away from all duties within the company and its international subsidiaries. The move comes after the European Union added the executive to its sanctions list.
Yandex confirmed that Volozh is leaving the board, the role of CEO within the Yandex group, and senior positions in the group’s overseas subsidiaries. The company described the EU decision as unfair and stated that it should not disrupt everyday operations.
“With Yandex, millions of users will continue to search for information, hail taxis, and have goods, food, and medicines delivered, while movies, music, education, and much more remain accessible,” the company noted.
They stressed that the sanctions target Volozh personally and do not extend to Yandex’s parent company, Yandex NV, or its subsidiaries, since he is not a controlling shareholder. “Arkady Volozh, through a family trust, holds 45.3 percent of the voting rights and 8.6 percent of the economic stake in Yandex NV. Instructions on how to vote with these shares are separated from his direct control.”
Moving forward, Volozh will continue to assist Yandex but will not direct or advise the trust on voting decisions, while the board of directors will manage all governance. “This choice serves the best interests of the company and its stakeholders,” Volozh stated. He also expressed his intent to safeguard the company and all shareholders’ interests. He described the EU decision as illogical and erroneous, calling it ineffective in practice.
The sanctions include asset freezes and prohibitions on providing financial and economic resources. Volozh remains the primary shareholder of Yandex, owning 86.24 percent of group B shares (which are the controlling votes, with few A-list shares traded). Group B shares confer 45.27 percent of the voting power.
Earlier, Tigran Khudaverdyan, who served as the company’s managing director, was also subjected to EU sanctions. After blacklisting, Khudaverdyan stepped down as CEO and left Yandex’s board.
EU sanctions
On the afternoon of June 3, the EU announced that Arkady Volozh was placed on the sanctions list, stating that the CEO of Yandex is a prominent businessman active in sectors that provide a significant income stream for the Russian state. The federation’s authorities indicated that the individual supports or enables actions that undermine Ukraine’s stability.
According to the European Commission, the company has financial ties to the Russian state and is involved in actions or policies that influence Ukraine’s security. Yandex is described as Russia’s leading internet company and the operator of the country’s most popular search engine. It is noted that Russian state banks such as Sberbank and VTB are shareholders and investors in Yandex.
In a 2019 restructuring, a “golden stake” was granted to a Public Interest Fund, which granted the Russian government veto power over critical decisions. Through this structure, the state can block issues like sales of intellectual property or transfers of Russian user data to foreign entities. The EU official record states this arrangement allows state oversight of sensitive areas.
Yandex has also faced scrutiny for promoting state narratives and for suppressing content deemed critical of the Kremlin, including reporting on Russia’s actions in Ukraine. The sanction framework also notes Volozh’s dual citizenship in Russia and Malta.
In total, the EU blacklisted 18 legal entities and 65 individuals connected to Russia. Besides Volozh, the list includes prominent figures such as the Kremlin’s spokesperson and several media leaders, along with a range of organizations tied to the defense and energy sectors. These details reflect the broad scope of the EU’s sanctions program at the time.
Market impact
Following the announcement about Volozh’s inclusion on the sanctions list, Yandex shares on the Moscow Stock Exchange declined to their lowest level since 2017. At 16:25 Moscow time, the price dropped sharply before stabilizing somewhat. Analysts highlighted the immediate market reaction alongside broader concerns about risk and corporate governance under the new constraints.
News outlets reported substantial losses for Volozh in recent years, including discussions about changes in his wealth and status as a major individual investor. Observers note the fluctuations reflect both sanctions and shifting market sentiment surrounding tech companies with strong ties to the Russian economy.
Historical context shows Volozh’s wealth has seen notable changes in response to political and economic events, and the trajectory of his stake in Yandex has continually influenced investor confidence and the company’s standing in global markets.