Page 152 - RusRPTOct22

Pavel Demidov has been appointed the new head of government relations (GR) in Russian internet major Yandex, RBC business portal reported citing unnamed sources. Notably, Demidov has previously worked for the Audit Chamber and is a long-time associate of chamber’s head, ex-FinMin and veteran policymaker Alexei Kudrin. Demidov’s appointment at Yandex thus confirms previous reports that a Kudrin-mediated deal between Yandex and the Kremlin is in the works. As followed by bne IntelliNews, a new deal is reportdly being negotiated between the founder of Yandex, Arkady Volozh, and the Kremlin, mediated by Kudrin. Volozh could agree to a new shareholder and management structure for the company in exchange for the Kremlin’s permission to develop some of Yandex assets independently abroad. RBC reminds that Demidov has worked with Kudrin for many years. Between 2012 and 2016, he was his advisor at the Civil Initiatives Support Fund. In June 2018, Demidov was appointed assistant to the chairman of the Accounts Chamber, and in July 2018 he became director of the external communications department.
● VK
Russian internet major VK (former Mail.ru) sold one of its key assets, the gaming division My.Games, for $642mn, or RUB37bn, to the managing director of LETA Capital, Alexander Chachava, Kommersant daily reported. Sources told the daily that the asset was sold with a 60% discount and was rushed due to Apple's most recent removal of VK's apps and games from the AppStore. The deal is yet another sale of a major non-media anchor asset of VK, which confirms that the main goal of the state takeover of VK is hoovering up media assets and establishing domination in the Russian digital and social media space. As followed by bne IntelliNews, VK had been developing a solid position in video games and cybersports, which became the main driver of its financial results. Prior to the invasion of Ukraine, unconfirmed reports even suggested that VK could IPO its gaming division. But in 2022 large foreign game developers have pulled out of the market, as foreign distribution platform had removed Russian games. Amid the crisis unfolding Russia’s largest bank state-controlled Sber (Sberbank) quickly terminated its gaming division SberGames. LETA Capital invests in InDriver, Novakid, Devar and other startups and will now get all My.Games assets, including company-owned studios and game products. My.Games co-founder Vladimir Nikolsky will continue to run the company. My.Games has a portfolio of over 150 games (e.g. War Robots, Hustle Castle, Left to Survive) and also sells games through its app marketplace. It has 12 regional offices and representative offices in Russia, Europe, the US and Asia. Its global partner network includes more than 50 development studios in Russia and abroad, according to Kommersant.
● Other
152 RUSSIA Country Report October 2022 www.intellinews.com