According to the NYT, Yandex wants to cut ties with the country.
The impact of the Ukrainian war on the businesses of the parent company.
President Putin's efforts to focus on tech and goods could be in jeopardy as a result of the exit.
Russia stands to lose its biggest tech company, which would throw a wrench in President Putin's plans to promote Russian-grown alternatives to Western technology.
Russia's largest internet business is known for its search browser and ride hailing apps. According to a New York Times report, the parent company wants out of Russia because of the possible negative impact the Ukrainian invasion could have on its business. The exit of Russia's biggest tech giant would be a blow to President Putin, who has made a concerted effort to produce Russian technology and goods.
As part of a larger restructuring plan, the parent company of Yandex would move its new businesses and most promising technologies outside of Russia. Those businesses would need access to Western markets, experts, and technology, all of which is unviable while the Russian invasion of Ukraine rages on.
The parent company might not have the final say on the move of the technology businesses. The Kremlin will have to approve the transfer of Russian tech licenses outside of the country. The restructuring plan would have to be approved by the shareholders.
Since the invasion of Ukraine, the business of Yandex has suffered. The tech giant's story is similar to that of the valley. The company employed more than 18,000 people and was worth more than $30 billion. At one time, it had offices in Palo Alto.
The price of the company's New York-listed shares lost more than $20 billion in value in less than a day after the war began, before the stock market halted trading. The Moscow-listed shares of Yandex dropped in the past year.
Yandex's misfortune is similar to other Russian tech companies that have struggled in the face of Western sanctions and the exodus of Russian IT workers. It's something even Putin can't deny, admitting that the Russian IT sector will experience a lot of difficulties as the US and 37 other countries restrict Russia's access to technology.
Untangling Russia's dependence on the global economy has been a challenge since the Ukranian invasion.
In 2015, the Kremlin tried to stop all government bodies from using foreign software, but by the end of the year only 10% of state-used software was Russian-made. Russia is also dependent on foreign technology. According to a note from Russia's central bank, more than half of Russian businesses relied on imports to make their goods. Foreign providers are often involved in the supply chain.
You can read the original article.
All Rights Reserved © 2024
