On July 15, a significant deal was finalized to split the assets of the Russian technology giant Yandex, marking a notable shift in the company's ownership and control. The deal, valued at approximately $5.4 billion, involved a Russian consortium of investors acquiring the majority of Yandex's businesses in a cash and shares transaction. This split signifies the end of foreign ownership in Yandex, often referred to as "Russia's Google," and potentially enhances the Kremlin's influence over the country's internet space. Additionally, this transaction represents the largest corporate exit from Russia since the country's invasion of Ukraine over two years ago.

Yandex's Dutch parent company, Yandex NV (YNV), sold its remaining 28% minority stake as part of the deal's second closing, receiving a total of $2.8 billion in cash and 162.5 million YNV class A shares. With this transaction, YNV has completely divested its interest in the Russian businesses. Yandex, which has been a trailblazer in the Russian technology scene since the late 1990s, established itself as a dominant player in search and advertising, ride-hailing, e-commerce, and various other online services. The retained AI-focused businesses in cloud, data labeling, self-driving cars, and education technology will be developed under the new Nebius Group name.

The deal's completion comes after about two years of negotiations, facing numerous challenges, including Kremlin demands for significant discounts on foreign asset sales and risks of nationalization. The return of Yandex co-founder Arkady Volozh as CEO of Nebius, following the lifting of EU sanctions against him in March, signifies a new chapter for the company, free from its Russian ties. YNV Chairman John Boynton expressed gratitude to the company's 1,300 employees and particularly acknowledged Vadim Marchuk, who led the deal team. With all connections to Russia now severed, the focus may shift to the future of YNV's Nasdaq listing, where many Western shareholders hold stakes in a trading-suspended market. Trading of Yandex shares in Russia under the new YDEX ticker is set to commence on July 24, despite a pending lawsuit from shareholders accusing the consortium's trustee of imposing discriminatory terms in the share exchange.