Yandex speaks out from front line of Western sanctions against Russia
- Reference: 1650556867
- News link: https://www.theregister.co.uk/2022/04/21/yandex_western_sanctions/
- Source link:
The Moscow-headquartered business provides a search engine that has a commanding share of the local search market, as well as tools including e-commerce, mobile applications, an email service, transportation, and online advertising.
The majority of its operations are located in Russia, the pariah state shunned by much of the world for its continuing invasion of Ukraine, and the company is feeling the squeeze of sanctions imposed by the West – even if Russian dictator Vladimir Putin is shrugging them off as a minor irritant.
[1]
In a [2]filing to update investors [PDF], Yandex said: "Current geopolitical tensions, their impact on the Russian and global economy, and the related stresses in broader social and business environment, have created exceptional challenges for our business."
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Neither Yandex, any of its group companies, nor directors are specific targets of the sanctions. "Nevertheless, we are indirectly impacted by the designation of numerous parties in Russia and the restrictions that this places on international businesses in Russia."
In addition, it noted strict controls on the export of technology – including both hardware and software – to Russia, and the decision by multiple companies to suspend shipments or in some cases withdraw entirely from the country.
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Companies including Apple, Dell, HP, [6]Intel , [7]SAP , Microsoft, [8]Nokia , [9]Ericsson , and many more have decided to take action to varying degrees. Some are relatively late to the party, including Toshiba, which [10]today joined the list .
[11]Five Eyes nations fear wave of Russian attacks against critical infrastructure
[12]Russian-linked Shuckworm crew ramps up Ukraine attacks
[13]Under pressure, SAP shuts down Russian operations
[14]Infosys quits Russia, ending UK political and tax scandal … maybe
"These developments have adversely impacted the macroeconomic climate in Russia, resulting in significant volatility of the ruble, currency controls, materially increased interest rates and inflation and a potential contraction in consumer spending, as well as the withdrawal of foreign businesses from the Russian market," Yandex said.
The businesses run by Yandex are "market leaders and remain broadly stable," it added, yet in the near-term it expects a toll to be taken.
"We expect our advertising business to be affected by the withdrawal of multinational advertisers from the market and tighter advertising budgets for domestic businesses.
"Our ride-hailing business remains stable, but we are unable to predict the impact of broader macroeconomic trends and changing competitive and supply and demand dynamics.
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"In our e-commerce businesses, we anticipate a reduction of discretionary spending by consumers, although we currently have limited visibility in this regard. In addition, we understand that many suppliers have announced intentions to suspend the sale of consumer goods to Russia, and several major shipping companies have ceased shipments to Russia; such actions, if prolonged, would result in a reduction of the number and selection of goods we are able to offer."
As such, under the current circumstances Yandex decided to withdraw financial guidance for the current year as "our visibility over the short- and medium-term is extremely limited."
Trading of Yandex's Class A shares remains suspended on Nasdaq and the company is unable to say when that will change. Trading of its shares on the Moscow Exchange resumed on March 29. ®
Get our [16]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YmHUGEZhK1J1Cucs-H3IzwAAAJE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://irpages2.eqs.com/websites/yandex/English/3021/us-sec-filing.html?shortDesc=Annual%20and%20Transition%20Report%20(foreign%20private%20issuer)&format=convpdf&secFilingId=acae5194-78a8-487f-af4e-a98582516e12
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[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YmHUGEZhK1J1Cucs-H3IzwAAAJE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2022/04/06/intel_now_suspends_all_business/
[7] https://www.theregister.com/2022/04/20/sap_closes_russia/
[8] https://www.theregister.com/2022/04/12/finnish_network_kit_maker_nokia/
[9] https://www.theregister.com/2022/04/11/ericsson_pulls_out_of_russia/
[10] https://www.global.toshiba/ww/news/corporate/2022/04/news-20220420-01.html
[11] https://www.theregister.com/2022/04/21/five_eyes_russia/
[12] https://www.theregister.com/2022/04/20/shuckworm-attack-ukraine-symantec/
[13] https://www.theregister.com/2022/04/20/sap_closes_russia/
[14] https://www.theregister.com/2022/04/14/infosys_q4_2022/
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YmHUGEZhK1J1Cucs-H3IzwAAAJE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[16] https://whitepapers.theregister.com/
The pariah state shunned by much of the world...
I think you meant to write the USA and Western Europe. India, China, South America and any part of Africa that matters have been far less vocal.
With the EU shelling out something on the order of €50 billion for Russian gas since hostilities began, it's perhaps even a stretch to claim they have shunned Putin. There has of course been an immense amount of empty virtue signalling which seems to be all that really matters these days.
"empty virtue signalling" to quote you. Which is why yandex posted the following:
"As such, under the current circumstances Yandex decided to withdraw financial guidance for the current year as "our visibility over the short- and medium-term is extremely limited."
Even you would think that if all was wonderful that they'd want to give us their rosy projections, right?
"Trading of Yandex's Class A shares remains suspended on Nasdaq and the company is unable to say when that will change. Trading of its shares on the Moscow Exchange resumed on March 29. ®"
Not Enough
What the West has been doing economically to Russia is NOT enough. Russia is still not ceasing their criminal invasion. As painful to Europe as cutting their energy purchases from Russia would be, it has to be done. Now. Europe is FUNDING this criminal government. The Russian government is a criminal enterprise. In total. As painful to the Russian people as a complete cutoff from the West would be, it has to be done. The Russian mobsters have to be stopped.
Re: Not Enough
That would be a bigger blow to the EU than to Russia. Russia will sell more to Asia, and the desperate EU nations buying any non-Russian fuel they can find will drive-up global energy prices, increasing the price Russia can charge Asia for their energy exports.
The US under Obama was anxious to ship large volumes of LNG to EU ports/terminals, but the EU was happy to remain dependant on Russia, despite how blatantly Russia was wielding their power. Had they mandated a mix with more non-Russian sources before now, the infrastructure to accept imports would already be built-out. Instead, Russia can shut down EU industry at will, and the EU needs years to develop the alternative supplies.
Until the war started, Yandex was running a trial of food delivery robots on the Ohio State University campus. I hope my friend A078 has not been drafted.