What Happened to Yandex N.V.?

Yandex N.V.'s journey from being the 'Google of Russia' to a specialized international AI company is a direct consequence of the geopolitical shifts following Russia's invasion of Ukraine in February 2022. Prior to the conflict, Yandex N.V., headquartered in the Netherlands, oversaw a vast array of internet services in Russia and several international markets, including search, e-commerce, ride-hailing, and cloud computing.

The onset of the Russia-Ukraine war and subsequent Western sanctions created an untenable situation for the Dutch-registered company with significant Russian operations. In November 2022, Yandex N.V.'s Board of Directors initiated a strategic review to restructure the group's ownership and governance, aiming to separate its international divisions from its Russia-based businesses. This process was driven by the need to ensure the sustainable development of its diverse portfolio and protect shareholder value amidst the 'unprecedented and exceptional geopolitical environment.'

A definitive agreement was reached on February 5, 2024, for Yandex N.V. to sell all of its businesses in Russia and certain international markets to a consortium of Russian investors, Consortium.First, led by Yandex senior managers. The deal was valued at 475 billion rubles (approximately $5.2 billion, later adjusted to $5.4 billion), a figure that included a mandatory discount of at least 50% imposed by the Russian government on foreign asset sales. The divested Russian businesses represented over 95% of Yandex's consolidated revenues and assets.

The sale was executed in two phases. The first closing occurred in May 2024, with Yandex N.V. selling approximately 68% of its Russian assets. The second and final closing took place on July 15, 2024, completing the divestment of the remaining 28% stake. Following the full divestment, Yandex N.V. received a total of $2.8 billion in cash and 162.5 million of its own Class A shares.

Concurrently with the sale, Yandex N.V. delisted its Class A shares from the Moscow Exchange by July 10, 2024, while its Nasdaq listing remained halted. The new Russian entity, named IJSC Yandex (MKPAO Yandex), became the parent company for the Russian operations and began trading on the Moscow Exchange under the ticker YDEX. Artem Savinovsky remained CEO of the Russian Yandex.

Post-divestment, Yandex N.V. officially rebranded as Nebius Group N.V. by July 31, 2024, retaining a portfolio of international businesses focused on AI cloud platforms (Nebius AI), data labeling (Toloka), autonomous driving (Avride), and education technology (TripleTen), along with a data center in Finland. Yandex co-founder Arkady Volozh, who had previously stepped down, returned as CEO of the newly formed Nebius Group. Nebius Group resumed trading on Nasdaq in October 2024.

Since its transformation, Nebius Group has actively pursued growth in the AI sector. In December 2024, it raised $700 million from private investors, including Nvidia. Further significant developments in 2026 include the acquisition of agentic search company Tavily for approximately $400 million in February, and plans to build an AI factory in Birmingham, Alabama. In March 2026, Nvidia announced a substantial $2 billion investment in Nebius. As of August 2026, Nebius Group N.V. is positioned as a critical 'AI Factory' for the Western world, with a market capitalization of $46.34 billion as of August 10, 2026, and a projected annual revenue run rate of $7 billion to $9 billion by the end of 2026. Meanwhile, the Russian Yandex entity continues its operations, with reports in July 2026 indicating potential staff cuts in its marketplace division.