Yandex assessed risks for its business

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

“Geopolitical and macroeconomic problems negatively affected the Russian economy and created uncertainty and instability in it: this situation can harm our business, harm the financial condition of the company and affect its results,” the Yandex report says. The consequences of the crisis turned out to be significant problems for Yandex, which are caused, in particular, by the depreciation of the ruble against the dollar.

In addition, the company's performance was negatively affected by the slowdown in the development of the Russian economy. At the same time, making a further forecast for the development of the economy is rather difficult. Nevertheless, it is now clear that advertisers are seeing a decrease in advertising costs. And since Yandex’s revenue is almost 100% dependent on advertising revenue, it is this factor that negatively affects the profitability of the company’s business.

Another negative factor is the sanctions of the United States and the European Union against Russia. However, it is not clear how long these sanctions will work. “This situation may affect the work of our international clients in Russia, which will negatively affect our income and profitability,” the Yandex.

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