Connect with us

Business

Putin Ally Kudrin to Take Yandex Role After President Approves

News Agencies

Published

on

Putin Ally Kudrin to Take Yandex Role After President Approves

(Bloomberg) — Alexei Kudrin, a longtime ally of Vladimir Putin, is expected to take a senior role in a restructuring of Yandex NV after winning the Russian president’s blessing to leave government service amid an overhaul of the country’s most prominent technology company following sanctions imposed over Putin’s war in Ukraine.

Most Read from Bloomberg

Kudrin, a former finance minister who’s worked with Putin since the 1990s and won a reputation as a relative economic liberal, is expected to handle the restructuring and sale of Yandex’s main businesses to a Russian investor and may get options for as much as 5% of that company, they said. Some international businesses would be spun off into a new entity with no ties to Russia.

The Russian leader signed off Kudrin leaving his current job as head of a government auditing organization in a meeting with him late Thursday, according to people familiar with the situation who spoke on condition of anonymity to discuss matters that aren’t public. Under the agreement with Putin, Kudrin’s planned role would help protect Yandex from pressure inside Russia and ensure it remained in private hands and under the control of management, they said.

Advertisement

The deal would mark the end of Yandex’s ambitions to be a global technology player, which have been decimated by the war and the international isolation of Russia that it brought.

The company said on Friday that its board will consider “options to restructure the group’s ownership and governance in light of the current geopolitical environment”. Those options include development of the international divisions of certain services, like self-driving technologies, independently from Russia. Yandex N.V. may divest ownership and control of all other businesses in the Yandex Group, including transferring certain elements of governance to management, according to the statement. The board also expects Yandex to be renamed, with the business to be divested retaining exclusive rights for the use of the Yandex brand.

Advertisement

Yandex, which now controls over 60% of the Russian search market and also includes technology services ranging from ride-hailing to e-commerce, has come under intense pressure both in Russia and abroad since the Feb. 24 invasion. Founder Arkady Volozh resigned as the company’s chief executive officer after the European Union sanctioned him in June for Yandex’s role promoting Russian state media’s version of the war. NASDAQ has indefinitely suspended trading in the company’s shares, once among Russia’s most popular issues among foreign investors.

Volozh, who moved to Israel in 2014, has sought to give up his Yandex stake – his family trust controls 8.5% of its equity and 45% of voting rights, though he transferred those to the board after he was sanctioned – in exchange for the Kremlin’s informal permission to allow him to keep intellectual property needed to develop some businesses abroad, according to people familiar with his thinking.

More than 10% of Yandex’s 19,000 employees have left Russia since the invasion as part of a wave of emigration among professionals who oppose the war. People from this group could become the core of an international entity that would split from the Russia-focused company and develop its most-promising projects, including its self-driving vehicle and cloud-computing divisions, the people said.

Advertisement

A spokesman for Kudrin at the Audit Chamber, the agency he currently heads, didn’t respond to a request for comment. A Yandex spokesman declined to comment. Kremlin spokesman Dmitry Peskov said he couldn’t confirm or deny whether Putin met Kudrin Thursday.

Even amid the government crackdown and international sanctions on Russia, Yandex has continued to post strong results, in part because it faced less domestic competition from companies like Google. Revenue rose 46% in the third quarter from a year earlier to 133 billion rubles ($1.9 billion), driven by growth in its search engine, mobility and e-commerce businesses.

However, its financial performance belies the turbulence the company is going through as the Kremlin expands its control over the internet and the West is increasingly suspicious of Russia. Yandex declined to provide any guidance on its outlook in its most recent results, citing uncertainty over the geopolitical situation.

Advertisement

(Adds Yandex statement on restructiring options in fifth paragrath)

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

Advertisement
Continue Reading
Advertisement

Advertisement

Breaking News

Editor Pick’s

Latest Entertainment

Gus Kenworthy says kiss with on-screen boyfriend was cut from '80 for Brady' Gus Kenworthy says kiss with on-screen boyfriend was cut from '80 for Brady'
Entertainment45 mins ago

Gus Kenworthy says kiss with on-screen boyfriend was cut from ’80 for Brady’

Gus Kenworthy attends the Los Angeles premiere of 80 for Brady on Jan. 31 at the Regency Village Theatre. (Photo:...

Alec Baldwin wants 'Rust' prosecutor dismissed as she's a Republican lawmaker: 'Unconstitutional' Alec Baldwin wants 'Rust' prosecutor dismissed as she's a Republican lawmaker: 'Unconstitutional'
Entertainment3 hours ago

Alec Baldwin wants ‘Rust’ prosecutor dismissed as she’s a Republican lawmaker: ‘Unconstitutional’

Alec Baldwin seen in New York City as he’s officially charged with involuntary manslaughter for the fatal shooting of cinematographer...

Harry Styles' dancers say Grammys set malfunction nearly caused chaos Harry Styles' dancers say Grammys set malfunction nearly caused chaos
Entertainment3 hours ago

Harry Styles’ dancers say Grammys set malfunction nearly caused chaos

Harry Styles and a crew of dancers unexpectedly found themselves rotating the wrong way during a live performance at this...

Pamela Anderson says she penned Britney Spears a 'private letter' to thank her for support Pamela Anderson says she penned Britney Spears a 'private letter' to thank her for support
Entertainment3 hours ago

Pamela Anderson says she penned Britney Spears a ‘private letter’ to thank her for support

Pamela Anderson sent Britney Spears a private letter thanking her for her public support. (Photos: Getty Images) Pamela Anderson says...

Is Kevin Costner quitting 'Yellowstone'? Everything you need to know about the state of the hit franchise Is Kevin Costner quitting 'Yellowstone'? Everything you need to know about the state of the hit franchise
Entertainment4 hours ago

Is Kevin Costner quitting ‘Yellowstone’? Everything you need to know about the state of the hit franchise

Kevin Costner in Season 5 of the Paramount hit Yellowstone. (Photo: Courtesy of Paramount Network) Could the Dutton ranch shut...

'They live up to the hype': These Bose noise-cancelling headphones are down to $279 'They live up to the hype': These Bose noise-cancelling headphones are down to $279
Entertainment6 hours ago

‘They live up to the hype’: These Bose noise-cancelling headphones are down to $279

If you haven’t yet treated yourself to a pair of top-notch noise-cancelling headphones, the moment has come. Right now, Amazon...

These Bose noise-cancelling headphones 'live up to the hype' — and they're down to $279 These Bose noise-cancelling headphones 'live up to the hype' — and they're down to $279
Entertainment6 hours ago

These Bose noise-cancelling headphones ‘live up to the hype’ — and they’re down to $279

If you haven’t yet treated yourself to a pair of top-notch noise-cancelling headphones, the moment has come. Right now, Amazon...

Harry Potter Franchise Seemingly Introduces Its First Trans Character in New 'Diverse' Video Game Harry Potter Franchise Seemingly Introduces Its First Trans Character in New 'Diverse' Video Game
Entertainment6 hours ago

Harry Potter Franchise Seemingly Introduces Its First Trans Character in New ‘Diverse’ Video Game

Harry Potter Gets First Transgender Character in New ‘Representative and Diverse’ Video Game Hogwarts Legacy Warner Bros. Games The Harry...

Advertisement

Latest Sports

Bethany Hamilton says she'll boycott World Surf League over its transgender policy Bethany Hamilton says she'll boycott World Surf League over its transgender policy
Sports40 mins ago

Bethany Hamilton says she’ll boycott World Surf League over its transgender policy

The 32-year old surfer doesn't support eligibility for transgender athletes to compete in women's events.

LeBron James scoring tracker: Will Lakers star break Kareem Abdul-Jabbar's record on Tuesday? LeBron James scoring tracker: Will Lakers star break Kareem Abdul-Jabbar's record on Tuesday?
Sports1 hour ago

LeBron James scoring tracker: Will Lakers star break Kareem Abdul-Jabbar’s record on Tuesday?

LeBron James is closing in on Kareem Abdul-Jabbar's all-time scoring record, and the Los Angeles Lakers superstar could break the...

Aaron Rodgers says he will contemplate football future by spending '4 nights in complete darkness' Aaron Rodgers says he will contemplate football future by spending '4 nights in complete darkness'
Sports2 hours ago

Aaron Rodgers says he will contemplate football future by spending ‘4 nights in complete darkness’

The Packers QB will be in isolation and says the experience could cause hallucinations.

LeBron was never fully satisfied with his game LeBron was never fully satisfied with his game
Sports2 hours ago

LeBron was never fully satisfied with his game

For LeBron James, becoming "a complete basketball player" has been a 20-year journey that has him on the cusp of...

Chris Simms explains how Mac Jones landed in Bill Belichick's 'doghouse' in 2022 Chris Simms explains how Mac Jones landed in Bill Belichick's 'doghouse' in 2022
Sports3 hours ago

Chris Simms explains how Mac Jones landed in Bill Belichick’s ‘doghouse’ in 2022

The Patriots' dysfunction on offense last season apparently included Mac Jones getting on Bill Belichick's bad side by taking matters...

What Ja Morant said when asked about friends' postgame confrontation with Indiana Pacers What Ja Morant said when asked about friends' postgame confrontation with Indiana Pacers
Sports3 hours ago

What Ja Morant said when asked about friends’ postgame confrontation with Indiana Pacers

Morant spoke to reporters Tuesday morning for the first time since the incident became public.

NBA rumors: Warriors willing to trade young players for significant upgrade NBA rumors: Warriors willing to trade young players for significant upgrade
Sports3 hours ago

NBA rumors: Warriors willing to trade young players for significant upgrade

The Warriors reportedly could move some of their youth before the NBA trade deadline on Thursday.

What Colts' offer to Bears for No What Colts' offer to Bears for No
Sports4 hours ago

What Colts’ offer to Bears for No. 1 NFL Draft pick could look like

Here is what the Chicago Bears could hope to get from the Indianapolis Colts if they trade the No. 1...

Technology Hot News

Led by "Amazon" and "Microsoft" . Led by "Amazon" and "Microsoft" .
Technology3 weeks ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Apple introduces MacBooks with new M2 processors Apple introduces MacBooks with new M2 processors
Technology3 weeks ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

All you need to know about the upcoming Galaxy S23 phones from Samsung All you need to know about the upcoming Galaxy S23 phones from Samsung
Technology3 weeks ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency
Technology3 weeks ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Because of a "fraudulent tweet".. Because of a "fraudulent tweet"..
Technology3 weeks ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

An electric spoon replaces salt and spices, but with conditions An electric spoon replaces salt and spices, but with conditions
Technology3 weeks ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

The biggest dangers of using tracking devices. The biggest dangers of using tracking devices.
Technology3 weeks ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

New Twitter. New Twitter.
Technology3 weeks ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...

Advertisement