Russia's Biggest Tech Company Wants To Cut Ties With The Country: Here's Why




 

With the ongoing war with Ukraine, Russia's biggest tech company wants to move out of the country. Russia has recently targeted basic infrastructures in Ukraine through a wave of air strikes, causing severe damage in the country. 

Often referred to as "Russia's Google," Yandex is Russia's most prominent internet company, widely popular for its search browser and ride-hailing apps.

Its Dutch-based parent company, Yandex N.V., now wants out of Russia because of the potential negative impact of the Ukrainian invasion, reports the New York Times.

The company believes the Ukraine war could negatively impact its business.

This may blow President Vladimir Putin, as the country has been struggling to build up Russian-based technology.

On Friday, the company said its board had "commenced a strategic process to review options to restructure the group's ownership and governance in light of the current geopolitical environment."

The company said in a statement that these options included developing some of its international divisions "independently from Russia" and divesting "ownership and control of all other businesses in the Yandex Group."

According to the Times, a Russian media group had earlier reported that Yandex N.V. would move its new businesses and technologies, including self-driving cars, machine learning, and cloud-computing services, outside Russia.

The NYT reported that moving out of Russia may be challenging, as the company would need the Kremlin's approval to transfer Russian-registered tech licenses outside the country.

Also, Yandex's shareholders would have to approve the broader restructuring plan.

Following Russia's Ukraine invasion, thousands of Yandex employees have left Russia. Yandex had more than 18,000 workers in Russia, and the company was worth more than $31 billion.

The price of the company's New York-listed shares lost more than $20 billion in value almost immediately after the war, before Nasdaq suspended trading in its shares.

Photo: Web Summit on flickr

  • Dogecoin Surges Over 10 Cents - What's Next For The Memecoin?

  • Shanghai Hit By COVID Protests: Demonstrators Chant 'Xi Jinping Step Down, CCP Step Down'

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

COMMENTS

More Related News

Emerging markets growth slowdown bottomed out in 2022, but risks remain - IMF
Emerging markets growth slowdown bottomed out in 2022, but risks remain - IMF

The International Monetary Fund on Monday raised its output growth estimate on emerging markets for this year, with projections now showing the economic...

Biden says no F-16s for Ukraine as Russia claims gains
Biden says no F-16s for Ukraine as Russia claims gains
  • US
  • 2023-01-31 00:50:02Z

The United States will not provide the F-16 fighter jets that Ukraine has sought in its battle against Russia, President Joe Biden said, as Russian forces...

Russia
Russia's war in Ukraine backfired by uniting NATO, even as cracks emerged over nearly a year of fighting
  • World
  • 2023-01-30 23:30:00Z

NATO bids and weapons deliveries have been complicated by diverging national interests, but the alliance is still unifying to upset Putin's plans.

Blinken, Netanyahu discuss countering Iran and support for Ukraine
Blinken, Netanyahu discuss countering Iran and support for Ukraine
  • World
  • 2023-01-30 20:48:00Z

U.S. Secretary of State Antony Blinken met with Israel's PM Benjamin Netanyahu on Jan. 30, discussing a range of joint U.S.-Israeli efforts to oppose Iran's ...

Boris Johnson Reveals Vladimir Putin Threatened Britain With Missile Strike Ahead of Ukraine War
Boris Johnson Reveals Vladimir Putin Threatened Britain With Missile Strike Ahead of Ukraine War
  • World
  • 2023-01-30 18:32:49Z

In a new BBC documentary, Johnson claims that Putin "threatened me at one point, and he said, 'Boris, I don't want to hurt you but, with a missile, it would ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy