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Yandex Finalizes $5.4 B Asset Split, Marking Major Corporate Exit and Birth of New AI Venture

By  |  July 16, 2024

Russian technology giant Yandex completed the division of its assets, with a Russian consortium acquiring the majority of Yandex’s businesses. The cash and shares deal, valued at approximately $5.4 billion, concludes the largest corporate exit from Russia since the onset of the Ukraine invasion over two years ago.

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    The transaction signals the end of foreign ownership in Yandex, often referred to as “Russia’s Google.” This shift potentially increases the Kremlin’s influence over Russia’s internet landscape, as the company now transitions to predominantly Russian control.

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    The split required the personal approval of Russian President Vladimir Putin, underscoring the geopolitical significance of the move. It reflects the broader trend of Western businesses withdrawing from Russia amid heightened sanctions and political tensions.

    Concurrently, the Dutch holding company formerly linked with Yandex announced its relaunch as an artificial intelligence venture in Europe. On Tuesday, the company introduced itself as Nebius Group, a tech firm focused on providing infrastructure and services to AI developers globally.

    “Today we are launching Nebius Group, a tech company that aims to become a leading European provider of infrastructure and services to AI builders globally,” the company declared in a press release. “Nebius is purpose-built to give AI developers the compute, storage, managed services, and tools they need to successfully train, develop, and run their models.”

    This announcement follows the completion of the $5.4 billion sale by Amsterdam-based Yandex N.V. to the Russian consortium, capping off two years of negotiations.

    Source: The Moscow Times