Kremlin Cannot Interfere In Yandex's Corporate Management Structure Change - Spokesman

Kremlin Cannot Interfere in Yandex's Corporate Management Structure Change - Spokesman

Russia's top technology company Yandex did not agree its corporate governance change with the Kremlin, which has no right to interfere in such decisions, Russian presidential spokesman Dmitry Peskov said Monday

MOSCOW (Pakistan Point News / Sputnik - 18th November, 2019) Russia's top technology company Yandex did not agree its corporate governance change with the Kremlin, which has no right to interfere in such decisions, Russian presidential spokesman Dmitry Peskov said Monday.

Yandex said Monday it was setting up a new structure, a Public Interest Foundation (PIF), which will take control of a "golden share" currently held by Sberbank. PIF is expected to be able to weigh in on consolidation of more than 10 percent of shares in one hands and on some other matters. PIF will be able to nominate two out of 12 members of the Yandex board. The change to the Yandex governance structure has to be approved at an extraordinary meeting of shareholders on December 20.

"Of course, there is no question of negotiating this with the Kremlin. These are corporate affairs that do not need to be agreed with the Kremlin," Peskov said.

When asked if this format could be used in other large Russian IT companies, the spokesman replied, "I have just said that we have no right to interfere in this, and the companies decide themselves what corporate governance model to use."

At the same time, the Kremlin is monitoring what is happening with Yandex because of the importance of the company in its sector and the role it can play in the Russian economy, Peskov said.