Yandex, the dominating Internet company in Russia, is warning of its bankruptcy. The reason is the exclusion from trading on the US technology exchange Nasdaq, as Yandex announced on Thursday in the USA. If this exclusion lasts longer than five trading days, certain creditors could claim their money and interest – but Yandex does not have enough reserves to pay them out in full.
The Nasdaq and the New York Stock Exchange suspended trading in shares of Russian companies on Monday. In order for shares to resume, companies must state what the consequences of the sanctions imposed over the Russian attack on Ukraine are for them. Yandex said that although it is not directly affected by sanctions, it can continue its business activities.
$1.25 billion
However, certain creditors may request immediate withdrawal of their money after a suspension of more than five trading days. It is about a sum of 1.25 billion dollars (1.1 billion euros), said Yandex. If all beneficiaries actually demand their money back, Yandex would not be able to pay for it. Even if it did, it “could limit our ability to meet our other financial obligations.”
Yandex is also called the “Google of Russia” – the group has been offering a search engine since 1997, which, according to the company, accounted for more than 60 percent of all searches in Russia in the last quarter of 2021. Yandex also offers ride-hailing and delivery services. According to its own statements, the company made a profit of 356 billion rubles (currently 3 billion euros) last year, according to the price in December it was around 4.77 billion dollars.