Yandex warned about the risk of company default

Yandex published a letter to shareholders about possible problems due to sanctions and economic crisis after the start of hostilities in Ukraine. The main risk, as follows from the letter, is the threat of the default of the company. “Yandex group” as a whole now does not have sufficient resources to fully repay notes , ”the company said.

An emergency situation arose due to the fact that on February 28, international sanctions began to operate against Russian companies. Yandex, like others, was banned from trading shares on the NASDAQ and the New York Stock Exchange. On other world exchanges, the Yandex shares collapsed , and the Moscow Exchange stopped trading at all by decision of the Central Bank - so far for several days, until March 5.

According to the law, five days after the trading stop, Yandex must notify shareholders about their right to cash out bonds - in this case, the company must redeem them. But the funds may not be enough.

Today, Yandex estimates its remains of funds at $ 615 million plus 47 billion rubles. For the redemption of papers you need 1.25 billion dollars. But the problem is also that the head company Yandex NV, registered in the Netherlands and its direct "daughters" now has only $ 370 million. The remaining money is for the Russian divisions of Yandex. The company fears that if necessary, he will not be able to transfer this money - now there are no restrictions on the transfer, but Yandex is waiting for them. So far, only Yandex fell under direct US sanctions. Money".

The representative of Yandex explained to Kommersant that the company is obliged to warn even about theoretical risks - which it did.

In addition, in the same letter, Yandex predicts that the existing capacities and technologies will be enough for the company for 12-18 months, then the work will suffer further due to stopping the supply of equipment, software and other technologies. The company also mentions rumors that "the Russian government in response to the sanctions will take steps to change control over companies or assets in Russia." In this case, the cost of Yandex will fall, warn in a letter.

Note - analogue of bond

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Photo on the cover: Anton Novoderezhkin / TASS