Yandex assessed risks for its business

On the website of the US Securities and Exchange Commission (SEC) yesterday the annual report of Yandex for 2014 was published. In the report, geopolitical problems and the economic crisis in Russia are assessed as the main threat to the company's business, Vedomosti reports. It is worth noting that in a similar report for 2013, these risks were indicated, among others, but were not put to the main place.

“The geopolitical and macroeconomic problems adversely affected the Russian economy and created uncertainty and instability in it: this situation can harm our business, harm the company's financial condition and affect its results,” the Yandex report said. The consequences of the crisis have turned into significant problems for Yandex, which are caused, in particular, by the depreciation of the ruble against the dollar.

In addition, a slowdown in the development of the Russian economy adversely affected the company's performance. At the same time, it is rather difficult to make a further forecast for the development of the economy. However, it is already clear that advertisers are seeing a decrease in advertising costs. And since Yandex’s revenue almost 100% depends on advertising revenues, it is this factor that negatively affects the company's business profitability.
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Another negative factor is the sanctions of the United States and the European Union against Russia. At the same time, it is not clear how long these sanctions will work. "This situation may affect the work of our international clients in Russia, which will adversely affect our income and profitability," the report said.

All these risks, indicated in the company's report, can lead to volatility in the financial markets, as well as to a significant reduction in the value of the securities of Russian companies.