Yandex will be losing $120 million annually because of Ukrainian sanctions

yandex_losses

Analyst of Promsvyazbank Ilya Frolov told Forex in a interview that Russian company Yandex will be losing up to 6.9 billion rubles (approx. $120 million – RRT) annually due to the sanctions introduced by Ukraine.

This is 10% of the company’s last year’s revenue. The analyst is sure that the falling income will be compensated by the growth of revenues from the Russian market. According to his estimates, the growth rate of Yandex’s revenue in 2017 will slow down from 27% to 19%.

In March 2017 Yandex was visited by 10.8 million users in Ukraine, or 17.6% of traffic. In Russia the number of visitors was 52.8 million.

Yandex, in turn, said that the sanctions will not have an impact on the company’s business, and that they regretted that “long-term efforts of our team were nullified”.

“The main victim of these sanctions are Ukrainian users. We’re sorry,” the company stressed.

Ukrainian authorities extended sanctions against Russian companies on May 16th. The restrictive measures hit Mail.Ru Group, Yandex and major media. The decree of the President of Ukraine implies freezing of assets on the territory of the country, and the prohibition on providing access to the sites by Ukrainian providers.

The Kremlin said that Moscow is “not yet ready” to talk about retaliatory sanctions against Ukraine. However, it was stressed that this move of the Ukrainian authorities violates the right to information.

Source: republic.ru