“Yandex” commented on the sanctions from the Ukrainian side

Photo: Ekaterina Kuzmina / RBC

Internet company “Yandex” does not expect a significant impact on financial performance in connection with the sanctions imposed by the Ukrainian authorities. However, the ban will affect 11 million of its Ukrainian users who choose the services of the company

As stated in received by RBC the message of “Yandex” company group “is very large and the sanctions will not have a negative impact”. “But we consider Ukraine to be an important part of our work and regret that the sanctions nullify all long-term efforts of our team. The main victim of the sanctions is Ukrainian,” — said in a statement.

“Yandex” in Ukraine is developing its services since 2005. It search, maps of Ukrainian cities, navigation, educational and other projects. In the message it is noted that the monthly audience of the company in Ukraine is 11 million users and “thousands of organizations” that use technology and services to develop their businesses.

How much the company earned in the Ukrainian market and how can change this figure, the representative of “Yandex” did not elaborate.

May 15 the President of Ukraine Petro Poroshenko has signed a decree, which entered into force the decision of the Council of national security and defence on the application against a number of legal entities and individuals “personal special economic and other restrictive measures.” For the first time in the sanctions list of Ukraine was the company “Yandex”. In accordance with the decision within three years, the assets of the company and “Yandex.Ukraïny” should be blocked from trading operations is limited, the withdrawal of capital from Ukraine is prohibited, also operates a number of other restrictions. While providers were ordered to block access to all resources “Yandex” from the main page search engine and news aggregator (news.yandex.ru) to transfer service “Yandex.Taxi”.

The document, which came into force on may 15, 2017, provides for the imposition of sanctions against 468 of Russian and Ukrainian companies and individuals. 1228 including the sanctions hit another major Russian Internet company Mail.Ru Group and its affiliated social network “Vkontakte” and “Odnoklassniki”. Earlier Mail.Ru said that also does not expect significant influence on financial performance in connection with the sanctions.

Analyst FK “URALSIB” Konstantin Belov recalled that the main income of “Yandex” is the revenue from online advertising. “The volume of this market in Ukraine almost ten times lower than in Russia, while Yandex is inferior it Google. Thus, the sanctions likely will not lead to significant losses of “Yandex” — says Belov. In his opinion, for Mail.Ru the situation is similar: it is unpleasant, but is unlikely to have a material adverse effect.

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