The CEO of Yandex Arkady Volozh
Source: The Moscow Times

Yandex CEO resigns after facing EU sanctions


The co-founder and the CEO, Arkady Volozh of the biggest Russian Tech company resigned from his post. This resignation came after the chief executive git picked out by the European Union penalties over the ongoing was between Russia and Ukraine.

The CEO of Yandex Arkady Volozh
Source: The Moscow Times

The multinational company with its headquarter in Moscow and business location in Amsterdam disclosed the standdown of Volozh from his post on June 32022The company said that the chief will be handing down his voting powers to the board.

Volozh is said to have taken this step after receiving the European Union penalty that claimed that he aided Russia both materially and financially in the ongoing war against Ukraine.

Volozh cofounded Yandex in 1997 and  since then the corporation is widely used in RussiaYandex is also termed as “Russian Google“.  The news released by the corporation has confirmed that it is not on the list of any sanctions issued by the U.S., the U.K., or the European Union itself.

Furthermorethe firm said that Volzo being penalized by the EU and resigning his post will not affect its economical status or bond with partners. However, the stakes of the corporation dropped by 6% on the Moscow stock exchange, after Volzo’s resignation announcement.

The company has been making several efforts to avoid sanctionsAt firstit threw out the deputy CEO of the company earlier in March when he was issued a penalty by the EUThen in Aprilthe firm sold its media businesses to VKontaktethe Russian social media companyThe media businesses of Yandex included its Yandex news aggregator and the blogging platform ZenThese businesses were put for sale after getting into controversies for circulating Russian propaganda and not reporting the correct information about the war.

The corporation had already cautioned itself previously that penalties being issued to other corporations might halt it from settling up its debts.

The former Chief Executive though does not hold the majority of stocks in the corporation yet he has a striking impact on itThis is because his family trust is the owner of 8.6of the corporation and has 45.3 % voting powers of the firmVolzoh has said that he won’t be giving any directions to the trust to vote till the penalties are in place thereforethe trustees will follow the directions of the board. Adding further he said that he will always assist the corporation and this step was taken by him for the corporation’s benefit.

Moreoverthe former CEO has denied the claims based on which the sanction is issuedHe said that the claims are fallacious and pointless.