Russian legislation makes nationalization of Yandex likely

RUSSIA / FSU POLITICS - In Brief 31 Jul 2019 by Alex Teddy

On July 26 legislation was introduced in the Russian Parliament aiming to restrict foreign ownership of internet resources to under 20%. Yandex is one of the big three Russian internet companies. Its parent company is Yandex NV which is based in Holland. Yandex is traded on the Nasdaq. Renaissance Capital (one of the main investors in Russia) wrote an analysis saying that Yandex's nationalization is a virtual certainty. This means Yandex would be bought by a state or a semi-state company. Yandex's stock price took a tumble after July 26. The company lost close to USD 1 billion in market capitalization in just 5 days. Yandex is the darling of foreign investors. If Yandex is nationalized this will deter foreign investors even more. The government professes to want foreign investment but drives it away. The main shareholders of Yandex are Wellington Management, Capital Research Global Investors, Oppenheimer Funds and Morgan Stanley.

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