Yandex Says Not Targeted by Sanctions, Analyzing Export Controls

By Josh Beckerman

Yandex NV said the company and its subsidiaries aren't a target of sanctions against Russia, nor are any members of its board, management or principal shareholders.

The search engine and ride-hailing company, in an "update on the impact of current geopolitical developments," said it is analyzing new export controls and working closely with vendors.

Yandex is one of several U.S.-listed Russian stocks that have been halted after Russia's invasion of Ukraine.

Yandex noted that some companies are "suspending supplies and services to customers in Russia." It said "we believe that our current data center capacity and other technology critical to operations will allow us to continue to operate in the ordinary course for at least the next 12 to 18 months."

Yandex said "we do not currently expect the blocking of certain financial institutions in Russia from the SWIFT system to affect our day-to-day operations."

It said "any prolonged economic downturn in Russia as a result of sanctions, depreciation of the ruble or negative consumer sentiment could have a material adverse effect on our results."

Under the terms of its 0.75% convertible notes due 2025, in the event of a trading suspension of Class A shares on Nasdaq of more than five trading days, noteholders would have the right to require redemption at par plus accrued interest, Yandex said. The current principal amount outstanding is $1.25 billion.

"The Yandex group as a whole does not currently have sufficient resources to redeem the notes in full," the company said. It is "currently conducting contingency planning to determine what steps we would take in this regard and what other sources of financing would be available to us, in the event that this redemption right is triggered."

According to a Reuters report Monday, Uber Technologies Inc. said it would remove three executives from a joint venture with Yandex.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

March 03, 2022 19:10 ET (00:10 GMT)

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