Russia largest Internet company said its chief executive officer is stepping down after he was sanctioned by the European Union.
Arkady Volozh, who cofounded Yandex, a portal sometimes called the the Google of Russia for its popular search function, will transfer his shares to the board of directors, the company said in a June 3 statement.
Volozh, who will also step down from the board of directors, co-founded Yandex in 1997, turning it into Russia’s leading search engine.
The European Union on June 3 sanctioned Volozh as part of its latest package of economic penalties against Russia for its unprovoked invasion of Ukraine.
The EU accused Volozh of “supporting, materially or financially, the Government of the Russian Federation” and said he is “responsible for supporting actions or policies which undermine or threaten the territorial integrity, sovereignty, and independence of Ukraine.”
Russia has gained significant influence over Yandex in recent years as President Vladimir Putin tightens his grip on freedom of information inside the country.
Yandex’s portal features a news aggregator that has become a key source of information for Russians.
The EU accused Yandex of altering the algorithm to make it harder for readers to find news critical of the Kremlin, including Russian war atrocities in Ukraine.
READ ALSO: US: Ecaped killer Gonzalo Lopez murders family of 5 in texas, shot dead by police
Under Volozh’s leadership, Yandex in 2019 agreed to a restructuring that gave a “golden share” to a newly formed Public Interest Foundation set up to “defend the Russian Federation interests.”
The EU said the agreement gives Russia a veto over a defined list of issues, such as the sale of material IP and the sale or transfer of Russian users’ personal data to foreign companies, both of which are deemed to affect Russia’s “national interest.”
Volozh called the EU’s decision “misguided.”
Yandex said it did not expect the sanctions against Volozh to impact its operations, financial positions, or relations with partners.
Neither Yandex nor its subsidiaries have been targeted by Western sanctions.
Yandex held an initial public offering of its shares in the 2000s, listing them on the U.S.-based NASDAQ exchange.
Trading in the shares has been suspended since Russia invaded Ukraine in February.
