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How War in Ukraine Roiled Russia's 'Coolest Company' (nytimes.com) 66

The decline of Yandex, the Russian version of Google, is emblematic of the economic and cultural troubles spawned by the invasion. From a report: What a difference a war makes. Just a few months ago, Yandex stood out as a rare Russian business success story, having mushroomed from a small start-up into a tech colossus that not only dominated search and ride-hailing across Russia, but boasted a growing global reach. A Yandex app could hail a taxi in far-flung cities like Abidjan, Ivory Coast; Oslo, Norway; or Tashkent, Uzbekistan; and the company delivered groceries in London, Paris and Tel Aviv. Fifty experimental Yandex robots trundled across the campus of Ohio State University in Columbus, bringing Grubhub food orders to students -- with plans to expand to some 250 American campuses.

Often called âoethe coolest company in Russia,â Yandex employed more than 18,000 people; its founders were billionaires; and at its peak last November, it was worth more than $31 billion. Then President Vladimir V. Putin of Russia invaded Ukraine. Almost overnight, as Western investors bolted from Russia and Western governments imposed harsh economic sanctions, its value dropped to less than $7 billion. The Nasdaq stock exchange suspended trading in its shares. The sudden distaste for most things Russian prompted the company to shutter various international businesses, including the delivery services in London, Paris and Columbus. Thousands of employees -- nearly a sixth of the total -- fled the country.

Its founder, Arkady Volozh, and his top deputy stepped aside after the European Union imposed sanctions on both, accusing them of abetting Kremlin disinformation. The company is not facing insolvency. But its sudden change of fortune serves not just as a cautionary tale for investors in an authoritarian country dependent on the whims of a single ruler. Yandex is emblematic, too, of the problems Russian companies face in a radically changed economic landscape and of the growing divisions over the war in society at large.

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How War in Ukraine Roiled Russia's 'Coolest Company'

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  • Hey Russian Trolls (Score:5, Insightful)

    by ThurstonMoore ( 605470 ) on Thursday July 07, 2022 @02:10PM (#62681780)

    Kiss the world's ass.

  • Cautionary Tale (Score:1, Interesting)

    by LarryRiedel ( 141315 )

    cautionary tale for investors in an authoritarian country dependent on the whims of a single ruler.

    As opposed to an authoritarian country dependent on the whims of corporate lobbyists and unelected bureaucrats controlling the levers of the financial system.

    • War is bad for business in general, except for the war profiteers. Right now the western world's economy is not tightly tied to the military like it was in the cold war or other times past, so no one significant is getting rich off of war. Even when the west has gone to war recently it's tried to avoid economic fallout (ie, exhortations to continue business as usual in the US, rather than making sacrifices to support the war effort). The general feeling in the west is to avoid war.

      As for Russia, probably t

  • by hdyoung ( 5182939 ) on Thursday July 07, 2022 @02:12PM (#62681794)
    in order to avoid getting a dose of novichok. They bend the knee to their czar. Everything else is secondary. International reputation? Irrelevant to Russia. A few thousand employees fled? Drop in the bucket. Good riddance - they didn't toe the line. Valuation down by a factor of 5? Anyone in Russia who cares has either emigrated, is in jail, or is keeping very, very quiet about it.

    We're entering a period of history where countries are going to be making a lot of decisions that aren't driven be economics. Personally, I think we're in for a rough decade or two. World gets poorer, and an outbreak of wars, probably fairly widespread across the planet. I don't really understand why. Maybe it has something to do with all the WW2 vets aging out. There's nobody left around to say "hey dudes, a world war is a really bad idea, take it from me, I was there, it's hell like you can't possibly imagine". Rinse, repeat.
    • by RobinH ( 124750 )
      Well, if you follow Peter Zeihan at all, he seems to think it's about 2/3 caused by the population declines in most nations, which is causing a stagnation in growth and that stagnation is just starting, and 1/3 a general pushback against globalization in western countries, particularly the US. He's saying in the last 10 or so presidential elections the US population has chosen the candidate seen as "less globalist" until the last election where neither Trump nor Biden ran on a globalist agenda. The mostly
      • Well, if you follow Peter Zeihan at all, he seems to think it's about 2/3 caused by the population declines in most nations, which is causing a stagnation in growth and that stagnation is just starting,

        I think population booms are more likely to cause conflict simply because you have a bunch of aggressive young men influencing popular culture and competing for entry level positions. Japan has been stagnant for years and been doing fine.

        and 1/3 a general pushback against globalization in western countries, particularly the US. He's saying in the last 10 or so presidential elections the US population has chosen the candidate seen as "less globalist" until the last election where neither Trump nor Biden ran on a globalist agenda.

        I think this is a misreading. The US isn't anti-globalist, it's anti-elitist. It's just that elitists are usually "globalist" because free trade and immigration make sense.

        Zeihan rose to prominence recently because he correctly predicted the Ukraine situation a few years ago.

        Kinda, he predicted Russia invading Ukraine for economic/birthrate reasons. But the real reason is tha

      • by labnet ( 457441 )

        Zeehan is a smooth talker but I’ve seen a few debunking videos that tear apart his ‘facts’, especially about China.

  • by Joviex ( 976416 ) on Thursday July 07, 2022 @02:16PM (#62681812)
    Over a company getting rekt even though it is a propaganda arm of the FSB in Russia? Good riddance. Stop believing bullshit fairy tales about countries that a single generation ago wanted the Western World to burn up and die.
    • by JoshuaZ ( 1134087 ) on Thursday July 07, 2022 @02:37PM (#62681848) Homepage
      One doesn't need to be sympathetic to Yandex or anyone involved with it to recognize that what has happened to the company is important and worth discussing. An article about the topic doesn't mean you need to be sympathetic to the people involved.
    • You're talking about the United States right, because the U.S. does not give a flying fuck about Europe. The Euro is on par with the Dollar. That's a huge drop in value for the Euro. Going along with the U.S. may not have been the smartest move by Europe.
    • by tlhIngan ( 30335 )

      Over a company getting rekt even though it is a propaganda arm of the FSB in Russia? Good riddance. Stop believing bullshit fairy tales about countries that a single generation ago wanted the Western World to burn up and die.

      No, but I found it more interesting that a rising Russian star economically is now foundering because of Great Leader's War.

      I'm not upset they're ruining their top company. I'm interested in seeing what the side effects of the war are having on Russia's basically now-destroyed economy.

      • It isn't imploding -- the rouble is stronger than before the war, though that doesn't mean stronger economy. But their anuual trade sufficit has doubled to $250B and they have made aliances with India, China and the Arab world countries who didn't like being told who they can trade with.

        Though how they plan to manage without Western high tech i don't know. Maybe they are hoping being cozy with China where all of it is made will help.

        • by orlanz ( 882574 )

          Those countries aren't trading with Russia because they are being _asked_ not to. They are doing it because it is the cheapest source of oil in the world. C&I also bought Venezuela and Iran oil when they were embargoed and had to lower their pricing to find buyers. Didn't really work out for either parties because their purchase price spiked when those countries folded and both had gotten used to the consumption.

  • by AmazingRuss ( 555076 ) on Thursday July 07, 2022 @02:30PM (#62681834)
    ... just potato!
  • This is a great example of the theory of "fuck around and find out."

    In a global marketplace, if you fuck around, you find out that the rest of the globe is willing to shitcan your ass and your valuation sinks.

  • by Anonymous Coward

    Often called âoethe coolest company in Russia,â Yandex employed more than 18,000 people

    â? âoethe? Huh? What am I reading?

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