Report: Yandex softens Kremlin’s requirements to corporate control

MOSCOW, Dec 5 (PRIME) -- Russia’ Yandex has succeeded in softening the requirements for an Internet company significantly during negotiations with the presidential administration, business daily Kommersant reported on Thursday quoting the Financial Times.

The Kremlin first wanted control over the company and a veto right for the whole board of directors, the FT reported, quoting sources.

The negotiations were held with participation of Sergei Kiriyenko, first deputy head of the administration, who was said to have rejected the idea of promoting Gazprom CEO Alexei Miller and Gazprom Neft CEO Alexander Dyukov to Yandex’s board of directors.

Kiriyenko promised autonomy to the Public Interest Fund, which will get Yandex’s golden share.

The fund will be able to put forward two of 12 directors on the board and block consolidation of 10% and more of shares in one’s hands. The fund will not be able to influence strategic, operating or economic activities of the company.

According to the FT, the Kremlin was persuaded that Yandex is not a threat or a mechanism through which somebody could attack the state’s interests.

President Vladimir Putin said in late November that he had met with Yandex’s management and core shareholders.

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