Yandex's top managers and Russian shareholders are celebrating. They have finally come up with and, most importantly, agreed with the government on a new management scheme that, on the one hand, will allow the company to save face and investors, and on the other hand, will calm officials who are very worried about foreign influence on the company. After all, almost 85% of Yandex's ordinary shares are traded on the American NASDAQ stock exchange. That is, anyone can buy them without the knowledge of the Russian authorities. And Yandex is already too big and influential to let things slide.

What will change? Next to shareholders, the board of directors and top managers, a new and not yet very clear structure will grow. It has a nice name – the Public Interest Fund, but the adjective requires clarification. Let the foundation of the fund’s board be formed by employees of universities and non-profit organizations; its composition, and the entire structure, have been agreed upon in detail, according to Vedomosti’s sources, by the presidential administration. So the interest here is not public, but rather state.

The new fund (read: the state) will not receive Yandex shares, but will acquire very interesting opportunities to manage the Internet giant. The fund will control the election of half of the board of directors, approve the appointment of the CEO of the Russian Yandex and demand the temporary removal of this director if the company somehow misbehaves in the event of a threat to national security. Finally, the fund will ensure that no one can consolidate 10% or more of Yandex shares without permission, that the company does not transfer users' personal data to third parties and does not give significant intellectual property to foreigners.

What Yandex sacrificed to get rid of political pressure

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Yandex is skillfully selling the new scheme. The company explains to employees that it has managed to maintain independence on most management issues (really?) and that a control mechanism in the form of a non-profit foundation with scientists is in any case better than selling a controlling stake to a state corporation. We all remember how Yandex shares collapsed after information appeared a year ago that Sberbank could increase its stake in the search engine. The company explains to investors that it has managed to preserve the ownership structure and position on NASDAQ without losses and eliminate the main political risks - for this reason, it is possible to allow a strange structure under state control to manage. Finally, the company obviously spent a long time convincing officials that the new management scheme, of course, is not as obvious as a purchase by a state corporation, but it will work without fail if suddenly a war breaks out and the enemy captures Yandex. Trusted people have been selected, they have been given the key to the gate, if anything happens, they will block all access and protect all the interests of the country.

In a letter to employees, co-founder Arkady Volozh describes how big Yandex has become over the past 10 years, and essentially proves that the government's keen interest in such a company is completely understandable and natural. It was indeed inevitable that the government would get a piece of Yandex's flesh. Governments around the world are now trying to regulate the Internet and most often achieve their goal. Another thing is that in countries like Russia, China, Iran, etc., due to national characteristics, Internet companies are gradually becoming part of the state machine, the propaganda machine, the machine of coercion and surveillance of citizens. In order to survive, businesses are increasingly forced to put "national interests" first. Yes, companies continue to supply users with new products and technologies, but there are no guarantees that they will not, if necessary, turn in users with all their guts and data.

Why Yandex's contract with the state is dangerous