Yandex N.V. announced it has agreed to sell its Russian assets to a consortium of Russian investors for 475 billion rubles ($5.2 billion). The deal, which ends over two decades of Western investment in its Russian operations, is subject to shareholder and Kremlin approval and comes amid a restructuring forced by Western sanctions related to Russia’s war in Ukraine.

In February 2024, under mounting political and legal pressure, Yandex announced the sale of its Russian business to an investment fund consisting of investors with close Kremlin ties. As part of the deal, most of its politically relevant services remained in Russia under state control, effectively transforming Yandex into a tool for Kremlin propaganda.

Amid mounting international and domestic pressure resulting from Putin’s invasion of Ukraine, Yandex NV is reportedly contemplating the sale of the majority of its Russian operations, including its leading search engine. This move comes in the context of previous controversies such as the resignation of co-founder Arkady Volozh, who condemned the war and was sanctioned by the EU, as well as earlier divestments of its news and blogging services to state-controlled platforms.

Following anti-war statements by Yandex co-founder Arkady Volozh condemning the Kremlin’s invasion of Ukraine, Russian authorities revised the partition terms for Yandex N.V. and reduced the initially approved $250-million payout to around $70-80 million.