What will happen to Yandex?
Yandex NV, the Dutch-registered parent company behind the Russian tech giant, announced on a Friday in late November that it plans a restructuring of its corporate management. The board of Yandex NV indicated that it is exploring changes to ownership and governance structures across the group.
In an official press release, the Yandex NV board described a plan to separate the core business, along with several foreign divisions, into a stand-alone group that would carry the Yandex brand. The Dutch parent would then gradually step back from ownership in that group and pursue a name change, according to the announcement.
Within Yandex, officials noted that the designated group could come under the leadership of senior Russian executives and continue to operate as an independent, private collaboration. In Russia, the company’s automotive projects, cloud technologies, training services, and data labeling platforms (Yandex.Toloka) would remain under the same brand names.
The parent company aims to oversee the international segments of these businesses, planning to convert them into separate entities in the future. The statement also stressed that any transformation would require shareholder approval, so full details would be disclosed later.
According to RBC, Yandex NV currently has its capital split with Arkady Volozh, the founder of the IT group, holding 8.5%, other employees owning 3.2%, and the remaining 87.6% in free float. A controlling stake lies with Volozh’s trust, which holds 45.1% of the voting shares, while board members and officers hold about 6.6%. A Public Benefit Fund has held a gold share since 2019, and the state retains veto rights over major structural changes to Yandex.
Experts cited by the publication anticipate that the Russian portion of the Yandex business could be led by former Yandex NV chief executive Tigran Khudaverdyan. Other RBC sources mentioned potential interest from Vladimir Potanin, the owner of Interros, and Sergei Gordeev, the co-owner of the PIK group.
Immediately following the disclosure, Yandex shares showed some movement. After dipping 0.5% on the Moscow Exchange early in the day, the stock initially rose around 1% before reversing to fall nearly 5%. By 6:35 p.m. Moscow time, the shares traded at about 2031 rubles, down roughly 4.65% for the session.
What will happen to Kudrin?
Even before the news about restructuring, reports circulated that Alexei Kudrin, head of the Accounts Chamber, might depart that post by year-end and take a position with Yandex. A source familiar with the matter suggested the move would benefit both the state and the company, with formal confirmation expected around late November or mid-December after parliamentary meetings.
RBC cited a separate source indicating Kudrin met with President Vladimir Putin in late November. The discussion reportedly covered not only a transition to Yandex but also how the company’s assets might be divided in the process.
Plans described by the source indicated a transfer to a new role within a matter of days, though legal nuances concerning appointing the head of a joint venture could push the transition back by around a hundred days. Constitutional changes in 2020 shifted appointment powers from the State Duma to the Federation Council, but similar adjustments were not made to the Law on the Accounting Chamber.
The RBC informant noted that for Yandex assets in Russia, a new legal entity would be created, with Kudrin taking a leadership position therein. As part of the arrangement, he could be offered 5% of the company’s shares, purchased 2% immediately and the remaining 3% later on.
Presidential spokesperson Dmitry Peskov declined to confirm Kudrin’s move during a briefing held on November 25. He stated that there was nothing further to add to what had been said previously.
Earlier reports in September discussed the possibility of Kudrin joining Yandex, potentially heading the Public Interest Fund, which is said to own a stake, or another entity to replace the fund. The Kremlin denied during that period that Kudrin’s transition was coordinated with the president.