Home World Russia’s ongoing invasion of Ukraine is pushing out one of Russia’s biggest tech giants

Russia’s ongoing invasion of Ukraine is pushing out one of Russia’s biggest tech giants

by News Desk
0 comment

Russian President Vladimir Putin arrives at a welcoming ceremony in Yerevan, Armenia, November 23, 2022.Contributor/Getty Images

  • Yandex, Russia’s largest tech company, wants to cut ties with Russia, according to the NYT.

  • Yandex’s parent company worries about the impact of the Ukraine war on its business.

  • The exit could come as a blow to Putin’s focus on homegrown technology and goods.

Russia stands to lose its biggest tech company, throwing a wrench in President Putin’s plans to foster Russian-made alternatives to Western technology.

yandex, Often called the Russian Googleis the nation’s largest Internet business, best known for its search browser and ride-hailing app. However, the Dutch-based parent company wants to pull out of Russia, citing the potential negative impact of the Ukrainian invasion on its business, one source said. New York Times reportThe withdrawal of Russia’s biggest tech giant would hit President Vladimir Putin, who has made concerted efforts to produce Russian technology and products as sanctions cut off access to Western suppliers. .

As part of a larger restructuring plan first reported Yandex’s parent company, The Bell (called Yandex NV), will move new businesses and its most promising technologies out of Russia, including self-driving cars, machine learning and cloud computing services, The Times said in a statement. I quoted people’s information and reported it. Anonymous sources familiar with the matter. These companies need access to Western markets, expertise and technology, all of which is not viable as long as Russia’s aggression in Ukraine escalates and Western sanctions continue.

However, the decision to transfer Yandex’s fledgling technology business may not be up to the parent company. The company needs Kremlin approval to transfer its Russian-registered technology licenses abroad, The Times reported. In addition, Yandex shareholders will have to approve a broader restructuring plan.

Russia’s tech sector takes a beating amid Ukrainian war

Yandex business, once Praised as a rare Russian business success story, has been struggling since the Ukrainian invasion. The tech giant’s story is the same one you see in Silicon Valley. Yandex employed more than 18,000 of his employees, worth more than his $31 billion, and was often referred to as the “Russian Google.”this there was an office At one point it’s in downtown Palo Alto, California.

But since Russia’s invasion of Ukraine, thousands of Yandex employees have left Russia, and the price of the company’s New York-listed shares has fallen to lost more than $20 billion That was just after the war, before the Nasdaq stopped trading the stock. Meanwhile, Yandex’s Moscow-listed stock has fallen 62% over the past year.

Yandex’s bad luck reflects other Russian tech companies struggling in the face of Western sanctions and the exodus of tens of thousands of Russian IT workers, he said. al jazeera newsThis is something even President Putin cannot deny, and with the United States and 37 other countries restricting Russia’s access to technology such as semiconductors and telecommunications equipment through export controls, Russia’s IT sector ” I admit that I’m going to face “huge” difficulties.

Unraveling Russia’s dependence on the global economy was an uphill battle for the country even before the Ukrainian invasion and its sanctions.

In 2015, Kremlin tried to stop All government agencies have stopped using foreign software, but by 2019 only 10% of the software used by the country was made in Russia. Russia is not only dependent on foreign technology. According to his 2021 memo from the Central Bank of Russia, more than half of Russian companies, or 65%, relied on imports for manufacturing. From cars to office papermost companies have foreign providers involved somewhere in their supply chain.

Read the original article at insider

You may also like

Leave a Comment

Copyright ©️ All rights reserved. | Canadian Trends