Yandex has likely been trying to balance between the Kremlin and its foreign governing bodies but now appears to be losing the battle to the Kremlin. The Kremlin appears to be forcing Yandex to sell or distance itself from international subsidiaries, including rideshare service Yango Israel, in order to comply with strict Russian data disclosure laws requiring Yandex to supply all user data – not just data of users in Russia – to the Russian Federal Security Service (FSB).
The Russian government has previously fined Yandex for failing to comply with this law despite Yandex’s statements that it is unable to provide the requested data.
The Russian government also previously fined Yandex CEO Artem Savinovsky for Yandex’s failure to comply with Russian censorship laws, possibly trying to compel Yandex into complying with Russian censorship laws not just in Russia but globally to undermine its global operations and userbase.
Yandex officials have previously stated that Yandex aims to follow the laws within each country it operates and have rebuked Russian datamining efforts by claiming it only provides user data to governments of users in that specific country.
Some Russian insider sources speculated that Yandex corporate development advisor Alexey Kudrin attempted and failed to turn Yandex into a national private company that Putin’s reported personal banker Yuri Kovalchuk would control.
Yandex founder and former CEO Arkady Volozh publicly decried the invasion of Ukraine on August 10, and some Russian insider sources speculated that Volozh’s statement was a “white flag” showing that he had accepted that the Kremlin would likely go forward with its speculated formal nationalization effort.
Reuters reported that its sources within Yandex fear a “brain drain” if the Kremlin nationalizes Yandex, as many Yandex employees left Russia following the full-scale invasion of Ukraine in February 2022.
The Kremlin is likely aware of this concern as investors affiliated with Kremlin officials rather than Russian government entities have recently made bids to purchase Yandex.
The possible transfer of Yandex to affiliates of Russian First Deputy Presidential Chief of Staff Sergey Kiriyenko suggests that Putin seeks to reward Kiriyenko for his personal loyalty, particularly following the June 24 Wagner Group rebellion.
Russian opposition outlet Meduza previously suggested that Kovalchuk, Kudrin, and Kiriyenko collaborated to propose a deal for investors to purchase Yandex on behalf of Kovalchuk.
Kiriyenko and Kovalchuk previously backed Wagner Group financier Yevgeny Prigozhin; while their current connection to Prigozhin is unclear, Kiriyenko has continued to publicly posture himself as a firm Putin loyalist following the June 24 rebellion.
Putin may be rewarding Kiriyenko to further secure Kiriyenko’s loyalty headed into the 2024 presidential elections, particularly as Kiriyenko has served as the Kremlin’s point person for affairs and elections in occupied Ukraine.
