Russia faced sanctions from countries after its attack on Ukraine. A flash statement came from Yandex, which manages about 60 percent of internet search traffic in Russia and carries out a large vehicle call business like Uber.
WILL YANDEX BE DIFFICULT TO PAY ITS DEBT?
Yandex said in a statement that it may not be able to pay its debts as a result of the meltdown in the financial market triggered by the sanctions.
According to the news of CNN Business; Yandex is based in the Netherlands, but its shares are traded on the Nasdaq and Russian stock exchange. Stock trading was suspended this week as the value of Russian assets collapsed in Moscow and around the world after the invasion.
The sanctions imposed by the United States, the European Union and other countries triggered the crisis. However, Yandex was not sanctioned.
Investors holding $1.25 billion worth of shares are entitled to demand full refunds and interest if Yandex is closed to trading on the Nasdaq for more than 5 days.
“NOT ENOUGH RESOURCES”
“The Yandex group as a whole does not currently have sufficient resources,” the company said in a statement.
Noting that they continue to closely monitor many issues, including sanctions, Yandex said that they are evaluating contingency plans to address possible developments.
Yandex, which had a market capitalization of approximately $17.4 billion at the beginning of February, reported revenue of 356 billion rubles in 2021.