Exclusive-Fear of tech 'brain drain' prevents Russia from seizing Yandex for now -sources

investing.com:

By Alexander Marrow and Polina Devitt

LONDON (Reuters) — The Kremlin's fear of a serious tech brain drain is the main factor preventing Moscow from nationalising Nasdaq-listed Yandex (NASDAQ:YNDX), often dubbed «Russia's Google (NASDAQ:GOOGL)», four people with knowledge of the company's divestment plans told Reuters.

Yandex's fate has been the subject of much speculation since it announced plans to pursue a corporate restructuring last November, a move that should ultimately see its main revenue-generating businesses inside Russia spun off from its Dutch-registered parent company.

As Russia's leading tech company, boasting some of the country's top developers among more than 20,000 staff, Yandex was one of the few Russian firms with genuine global ambitions before Moscow unleashed its war in Ukraine in February 2022.

Many of its staff have moved abroad, some relocating to Serbia, where its new offices are filling up quickly. Maksut Shadaev, the head of Russia's ministry of digital affairs, told parliament in December that around 100,000 IT specialists had left Russia in 2022.

And at a company where staff know-how is crucial to maintaining a leading position in search technology, advertising and ride-hailing, a hostile takeover by the state that sparks a talent exodus could do serious damage, according to the sources.

«It's obvious that if (nationalisation) happens, the company will gradually come to nothing,» said one of the people with knowledge of the talks. «And this is probably what is stopping tough action from being taken.»

The Kremlin did not respond to a request for comment. Yandex declined to comment. In a results filing late last month the company said its plans for the potential corporate restructuring were