Page 135 - bneIntelliNews monthly country report Russia May 2024

ridetech and delivery segment is RUB 2.9bn. against negative 10.8bn rubles. The number of Ya.Plus subscribers increased by 48% to 32.7mn, and segment revenue increased by 54% to RUB 20.5bn. (profitability was -2.6%).
Yandex expects the closing of the first stage of the restructuring deal in the coming weeks (previously expected by April 30). New information regarding proposals for the exchange or redemption of Yandex N.V. receipts. did not have.
Overall, we continue to have a positive view on Yandex shares, given strong results, especially in key segments, and reduced uncertainty regarding the company's future ownership structure.
● VK
One of the most widely discussed changes in the tech sector is the possible resignation of Vladimir Kiriyenko — son of Sergei Kiriyenko, the deputy head of the presidential administration and Kremlin’s point man on domestic policy — from his role as CEO of VK Group. His rumored replacement? Another political nepo-baby: Stepan Kovalchuk, the grandson of Mikhail Kovalchuk and great nephew of Yury Kovalchuk, one of Putin’s closest confidantes. The resignation of Vladimir Kiriyenko from VK has been actively discussed inside the company in recent months, four sources close to the group and Kiriyenko told The Bell. If he does step down, it is likely to happen after Putin’s inauguration, when the full government resigns (a constitutional obligation), one source said. One of the reasons for his departure could be strained relations between Kiriyenko and Stepan Kovalchuk, currently a top exec in the company. Kovalchuk’s family are major shareholders and the 29-year-old represents their interests inside the firm.
Kiriyenko could return to state-run Rostelecom, where he served as vice president for five years before joining VK. Alternatively, he could move directly into the government, possibly as a deputy minister with a view to becoming digital development minister in the long-term.
Stepan Kovalchuk’s grandfather, Mikhail Kovalchuk, is president of the Kurchatov Institute. Mikhail’s brother, Yury Kovalchuk, is the co-owner of Rossiya Bank and one of Putin’s closest friends. He is also a major player in controlling the country’s TV networks and has been tasked by the Kremlin with extending that influence into the online space. His companies bought into VK in 2021 and after that deal, Vladimir Kiriyenko — whose father Sergei is considered close to the Kovalchuks — was appointed CEO.
Stepan Kovalchuk has worked at VK since the late 2010s, but his career at the company really took off after his family bought a stake. He was appointed senior vice president for media strategy and service development, then became head of a unit that included both the VKontakte and Odnoklassniki
135 RUSSIA Country Report May 2024 www.intellinews.com