Russia’s biggest search engine could collapse as financial fallout from the invasion of Ukraine spreads.
Yandex (YNDX), which handles about 60% of internet search traffic in Russia and operates a big ride-hailing business, said Thursday that it may be unable to pay its debts as a consequence of the financial market meltdown triggered by the West’s unprecedented sanctions.
The company is based in the Netherlands, but its shares are listed on the Nasdaq and the Russian stock exchange. Dealing in the stock has been suspended this week as the value of Russian assets collapsed in Moscow and around the world in the wake of the invasion. The imposition of sanctions by the United States, European Union and other big Western economies last weekend piled on the pressure.
Yandex hasn’t been sanctioned but it could still default. Investors who hold $1.25 billion in Yandex convertible notes have a right to demand repayment in full, plus interest, if trading in its shares are suspended on the Nasdaq for more than five days. The Moscow stock market will remain shut at least until Tuesday, Russian state news agencies reported on Friday.
“The Yandex group as a whole does not currently have sufficient resources to redeem the Notes in full,” the company said in a statement.
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