Volozh Arkady Yuryevich

Volozh Arkady Yuryevich

Volozh Arkady Yuryevich is the founder of Yandex.

After the IPO in May 2011, Volozh still has 19.77% of Yandex's voting shares (he owns part of his stake through BC&B Holdings, an offshore joint with Baring Vostok). Shareholder and member of the board of directors of Infinet Wireless (a domestic developer and manufacturer of WiMax broadband wireless access systems).

State

It takes 114th place in the ranking of the Russian-language version of Forbes "Richest Businessmen Russia - 2011." The fortune of Arkady Volozh is estimated at 900 million# dollars^[1]

It ranks 97th in the ranking of the Russian-language version of Forbes "The Richest Businessmen of Russia - 2012"^[2].

According to Forbes for 2013, the gender of the national search engine has a fortune of $1.15 billion.

By mid-April 2020, Arkady Volozh's fortune is estimated by Forbes at $1.2 billion. Read more here.

Biography

Born February 11, 1964 in the city of Guryev, Kazakh SSR (now Atyrau).

Education

1986 - graduated from the Gubkin Institute of Oil and Gas with a degree in Applied Mathematics. He was engaged in research in the field of processing large amounts of data at the Institute of Management Problems (IPU) of the USSR Academy of Sciences.

1988

Business success came to him when he co-founded one of the first Moscow computer cooperatives in 1988.

In 1988, Volozh co-founded the Magister cooperative (computer trade) and the small enterprise Arkady (creation of Russian-language search engines).

1989: CompTek CEO

From 1989 to 2000, Volozh was the CEO of CompTek, the largest computer company founded by him, a Russian provider of network solutions.

In 1993, Arkady was joined by CompTek^[3].

In 1998, as head of the Wireless Access Networks Committee of the Russian Documentary Telecommunications Association (RANS.RU), Volozh participated in the process of deregulating frequencies for wireless access operators.

In 1999, Volozh became one of those who influenced the fate of the legalization of IP telephony in Russia.

2000: Co-founder and CEO of Yandex

In 2000, Volozh became the CEO of Yandex.

The idea of ​ ​ creating a search engine came to Volozh in the late 1980s, when he was still selling computers. He developed the first such system by order of the Research Institute of Patent Information - it was a classifier of inventions.

The word "Yandex" was invented by Arkady Volozh and his classmate at the Republican Physics and Mathematics School (RFMS) in Alma-Ata Ilya Segalovich ( future director of technologies at Yandex) in 1993 . One of the variants of the name was the word index, which was later transformed into yandex - yet another indexer ("Another indexer," or Language index). Volozh suggested the Russian letter "I" in the name - for clarity.

2007 - Head of the Department of Data Analysis at the Faculty of Innovation and High Technologies of MIPT.

Arkady Volozh entered the first hundred of the presidential list of the reserve of managerial personnel, approved in February 2009.

2011 - shaved off his mustache, which he wore for more than ten years, after Yandex successfully placed shares on the stock exchange^[4].

On May 23, 2011, during the IPO of Yandex, Arkady Volozh sold part of his shares and earned $101 million^[5]. After the IPO in May 2011, Volozh has 19.77% of Yandex's voting shares (he owns part of his stake through the offshore BC&B Holdings joint with Baring Vostok).

2017: Obtaining Maltese citizenship

In January 2018, it became known that Arkady Volozh and his family members bought Malta passports. The founder of Yandex is among more than 700 Russians who have become naturalized citizens of the island state in the Mediterranean Sea. The information is published on the website of the government of the country.

The representative of Yandex explained to RBC that Arkady Volozh travels a lot on business, and European citizenship allows you to travel without visas.

Arkady Volozh

As before, he remains a Russian citizen and fulfills all the requirements of Russian legislation, the Internet company noted.

The list of naturalized citizens of Malta who received passports in 2016 revealed the names of dozens of Russian businessmen. Among them are the owner of O1 Group Boris Mints and his family members, co-owner of ICT Holding Alexander Nesis, the main owner of the Beluga Group alcohol holding Alexander Mechetin, the largest latifundist in Russia Igor Khudokormov and deputy chairman of the board of Alfa Bank Alexei Marey.

Malta's passport was also bought by former LenovoGleb Mishin, vice president. Among the reasons for this decision, he named favorable tax conditions. Mishin did not rule out that in the future he could register a business in Maltese jurisdiction.

This citizenship makes it easier to obtain visas for free movement around the world, which is relevant for our family, since my children study abroad, "he said.

The Citizenship for Investment programme has been in place in Malta since 2013. The main contribution is 250 thousand euros, which are invested in government bonds and returned in five years. Also, the applicant for a period of at least five years must purchase or rent housing on the island.

The Maltese passport gives the right of visa-free entry to most countries of the world, while its holder is not obliged to live on the island and be its tax resident.^[6]

2020

Sale of part of Yandex shares

In January 2020, it became known about the decision of Arkady Volozh to sell more than 2 million shares of Yandex. The co-founder of the Internet company attributed this move to the lack of dividends and regular salaries.

I have 95% of the assets in the shares of one company. If you had it, would you somehow diversify? We don't have dividends in the company - for now, at least. And I don't have a regular salary, "Volozh told reporters on the sidelines of the World Economic Forum in Davos (quoted by Prime).

It became known about the decision of Arkady Volozh to sell more than 2 million shares of Yandex

Arkady Volozh called Yandex a "good, gorgeous company" and said that he last sold its shares "five or six years ago."

By January 22, 2020, about 85% of Yandex shares are freely traded on the American stock exchange. One share gives one vote at a shareholder meeting. The company also has class B shares - they are distributed among the founders. When sold or after the death of the owner, they are automatically converted into Class A shares.

Earlier, Volozh agreed until January 1, 2022 not to sell 95% of Yandex's B-class shares, as well as to create a trust that will manage them for two years in the event of his death. A family trust called was set up in January 2020.

As noted by Prime, on January 22, 2020, Yandex announced that Volozh and Lastar could sell up to a little more than 2.029 million shares of a class A company (4.4% of all class A shares it owns) within 12 months. If all that stock is sold, the family trust will still hold about 30.8 million Class B shares, representing about 9.3% of the company's share capital or about 47.2% of the company's voting shares.

Now Volozh has announced his desire to sell 0.6% of Yandex's capital on NASDAQ within a year. He will sell shares gradually, in very small portions.^[7]

Re-election to the board of directors of Yandex

On October 29, 2020, Yandex shareholders at the annual meeting approved the updated board of directors. The head of Sberbank German Gref, who has been a member of the council since 2014, came out of it. Shareholders re-elected co-founder and head of Yandex Arkady Volozh as executive director on the board for four years. Read more here.

2021

Sale of 29 thousand shares of Yandex for $1.9 million

In early March 2021, it became known about the sale of 29,180 shares Yandex of "," owned by co-founder of the company Arkady Volozh and his family trust Lastar Trust. This is stated in the documents that Yandex provided to the US Securities and Exchange Commission SEC ().

It is noted that the sale of class A securities on the open market has become part of Arkady Volozh's long-term strategy to diversify assets and ensure liquidity.

According to Yandex materials, by the beginning of March 2021, Volozhu owns 30.8 million shares of class B. The total share of the entrepreneur and his family trust is 8.7% and provides 45.5% of the vote. One Class B share is converted into ten Class A shares. Yandex shares of Class B are automatically converted into Class A shares upon sale or death of their owner.

Arkady Volozh sells 29 thousand shares of Yandex for $1.9 million

The value of Yandex's class A shares on the Nasdaq exchange at the close of trading on February 28, 2021 was $63.9 per share. Thus, Volozh can earn about $1.9 million on the sale of 29,180 shares.

By early March 2021, Arkady Volozh remains the largest shareholder of Yandex. The vast majority of these shares were transferred to the family's Lastar Trust, which was set up to reorganise the management of the company.

The change in management of the Internet company had to be made in response to the dissatisfaction of officials who noted that most of the capital of the company, which the authorities consider strategic for the Russian economy, can be obtained by foreigners.

Arkady Volozh has control over the company, and if something happens to him, control over the company could pass to foreign investors. This is a problem that Yandex should have realized, but it took the position of an ostrich. Until the government realized this problem, the magazine quotes its source close to the company. Forbes[8]

The decision not to sell Yandex shares until 2024

In early December 2021, it became known about the decision of the founder and CEO of Yandex Arkady Volozh not to sell shares of the B-class company until the end of 2023. We are talking about the extension of the blocking agreement, which Volozh and his family trust entered into in December 2019, according to a press release.

Volozh does not plan to sell its B-class shares, thus, the lock-up extension will clarify the market and ensure the continuity of Yandex's activities in the coming years, the report says.

Arkady Volozh agreed not to sell Yandex shares until 2024

I am very proud of what we have achieved to date, but I am especially pleased with the opportunities that we see ahead, - said Volozh.

According to him, in addition to expanding the capabilities of the main business, Yandex is also making important investments in new projects such as e-commerce, self-government and cloud technologies. In addition, the company began to use world-class technology with wide capabilities. All this laid the foundation for ensuring excellent growth in the near future, as Yandex opens up new sources of value for all its shareholders, the company's CEO explained.

By the beginning of December 2021, the Volozh family trust owns approximately 30.8 million shares of the B-class company, whose economic share in the company is 8.7% and provides 45.5% of the vote. One Yandex share of class A gives the holder one vote at a shareholder meeting, super-voting shares of class B give 10 votes. In the event of the sale or death of the owner, the Class B shares lose their validity and are automatically converted into Class A shares.

Earlier in 2021, Yandex announced Arkady Volozh's plans to sell up to 29,180 class A shares for about $1.9 million. The sale of securities was part of his long-term strategy to diversify assets.^[9]

2022

Inclusion in the EU sanctions list amid the conflict in Ukraine and departure from Yandex

On June 3, 2022, Yandex founder Arkady Volozh was included in the EU sanctions list. The decision was made against the background of Russia's special operation in Ukraine.

Arkady Volozh leaves all posts in Yandex, the company said half an hour after he was included in the EU sanctions list.

Consent to waive a stake in Yandex in exchange for intellectual property rights abroad

Yandex founder Arkady Volozh, who lives in, Israel is ready to give up his stake in the company in exchange for being allowed to preserve the intellectual property rights necessary to develop business abroad, sources said. Bloomberg

Assets seized in Finland

September 22, 2022 it became known about the arrest of the assets of Arkady Volozh in Finland. In addition to Yandex, the restrictions affected the company itself.

According the Finnish to the newspaper Helsingin Sanomat, the authorities Finland arrested local assets "" in Yandex late August - early September 2022. The publication indicates that this event "probably will not have a direct impact on the company's activities." "" Yandex operates a taxi ordering service Yango in Finland and has in the city of Mäntsylä, data center which is used to partially supply heat to local houses.

Arkady Volozh

The seizure of assets means that the property cannot be transferred to bail or sold without the permission of the bailiff, the publication clarifies. The publication notes that the confiscation of the assets of Yandex and Arkady Volozh occurred after the European Union imposed sanctions against the Russian entrepreneur.

Earlier, Arkady Volozh left the post of general director and board of directors of Yandex, but this did not help him avoid the sanction. The Finnish authorities in their decision refer to the arguments of the EU, according to which "Volozh acts as a leading representative of the economic region, which is an important source of income for the Russian government."

Sources of The Bell said that Arkady Volozh wants to exchange control in Yandex for the opportunity to withdraw part of the assets abroad. And Alexei Kudrin can help him carry out the deal. But the Kremlin and Yandex denied the information.

According to The Bell, Volozh had long dreamed of making the company international, and some of the projects, such as drones, were initially aimed at foreign markets. Abroad, he also wanted to develop cloud services - in countries where there are none, for example, outside Europe and the United States.^[10]

Forbes: Offered Kudrin 5% of Yandex in exchange for help in coordinating the division of the company's assets

The co-founder of Yandex"" Arkady Volozh offered the chairman Accounts Chamber Alexey Kudrin 5% of Yandex in exchange for help in coordinating the division of assets. This was announced on September 23, 2022 by Forbes the magazine, citing its sources.

According to them, as part of the division of assets, Arkady Volozh plans to separate the business of unmanned vehicles into a separate legal entity and develop it abroad, the rest of the assets will have to remain in Russia. It is reported that Kudrin and Volozh discussed the details of the deal in Tel Aviv. According to the publication, the head of the Accounts Chamber promised the founder of Yandex to help with the division of assets.

Yandex co-founder Arkady Volozh offered Yandex 5% to the Chairman of the Accounts Chamber Alexei Kudrin in exchange for help in coordinating the division of assets

According to Forbes, Alexei Kudrin was seen in Israel in April 2022 at the Ritz Hotel in Greece (a resort near Tel Aviv). He himself said then that he was on a long-planned trip for the weekend. At the end of May 2022, he wrote on his Telegram channel that he was going to Israel:

I want to stop rumors before they appear. In compliance with all the necessary formalities and having received all the permits, I will again be in Israel - I am going to previously planned medical consultations.

As of September 23, 2022, Yandex's capitalization is $6.51 billion. Thus, Kudrin's potential share in Yandex is estimated at about $325 million. According to Forbes, the head of the Accounts Chamber can receive shares through options.

Two Forbes sources also say that Kudrin received an offer to join the board of directors. One of them clarifies that Kudrin will head Yandex.

On September 16, 2022, Meduza (recognized as a foreign media agent), citing its sources, reported that Alexei Kudrin asked Russian President Vladimir Putin to move to the Yandex board of directors, and the head of state approved this request. Subsequently, Kremlin spokesman Dmitry Peskov denied this information.^[11]

Amsterdam home seizure by activists

On October 31, 2022, it became known that Dutch activists seized the house of Yandex founder Arkady Volozh, which is located in southern Amsterdam. Thus, squatters want to draw the attention of the public and the authorities to the housing crisis, as well as show that "the rights of billionaires are better protected than the rights of ordinary people."

In the current geopolitical situation, personal sanctions were imposed on Arkady Volozh by the European Union. At the same time, neither Yandex N.V. (a joint-stock company registered in the Netherlands in 2004), nor subsidiaries of the Yandex group of companies were included in the EU or US sanctions lists.

In Amsterdam, activists seized the house of the founder of <Yandex>

The founder of Yandex acquired a house in Amsterdam through a company in the British Virgin Islands, and therefore the property remained out of the sight of the Dutch authorities for a long time. At the same time, at the beginning of September 2022, Mr. Volozh, on his own initiative, disclosed information about his property in this country. But due to the insufficiently effective interaction between various departments, the relevant structures needed weeks to process the provided data. Now Arkady Volozh's real estate in the Netherlands is "frozen": the owner has no right to sell or rent a house. Maintenance work by contractors is also not allowed.

As it now turns out, a group of squatters entered the empty building owned by the founder of Yandex on October 27, 2022. How they got into the house, and how many people are there now, is not known. In their statement, activists say that they occupied the property because they oppose "the current geopolitical situation, the greed of oligarchs and billionaires." It is known that the police visited the building on October 31, 2022, without providing any additional information.^[12]

Court refusal to evict squatters from Amsterdam home

On November 16, 2022, it became known that a court in the Netherlands refused to evict squatters from the house of the founder and former general director of the Yandex group of companies Arkady Volozh in Amsterdam.

The statement of claim, filed on behalf of Mr. Volozh, contained a demand for the eviction of persons who arbitrarily settled in a building that did not belong to them. According to the documents, the founder of Yandex purchased a house in Amsterdam for personal use: in particular, he planned to stay with his family during visits to the Netherlands. Located in an upscale neighborhood, the house is one of the city's most expensive, overlooking the picturesque Vondela Park. The statement of claim also states that the building should be empty, since it is undergoing major repairs.

Court denies lawyers to evict squatters from Arkady Volozh's home in Amsterdam

However, the court found all these arguments unconvincing. Personal sanctions have been imposed against Arkady Volozh by the European Union, and therefore, according to the judge, a visit by the founder of Yandex to Amsterdam is unlikely. As for the overhaul of the building, such an update will lead to a "significant increase in the cost of the facility and, as a result, to an increase in capital" of Mr. Volozh. And this again contradicts European sanctions. Reconstruction on behalf of someone on the EU sanctions list is allowed only if the Ministry of Finance grants an appropriate exception. But, according to court documents, there is no information about such an exception.

In fact, the court agreed with the statements of squatters who claim that Arkady Volozh intends to rent out his real estate in Amsterdam. Given all the above, the judge refused to forcibly evict activists from the building. Whether the lawyers of the founder of Yandex plan to appeal is not specified.^[13]

Leaving Yandex

December 30, 2022 Arkady Volozh announced his departure from Yandex. The co-founder of the company did this in a New Year's address to employees

It's time for me to write a farewell post in Etushka [internal portal of the company - approx. TAdviser]. As you know, I have not managed the Russian Yandex for a long time, and this year I had to leave all positions in the company at all... In the bustle of recent months, I never said goodbye to you. The New Year is a good reason to fix this, "he wrote (quoted by RIA Novosti).

Arkady Volozh

Volozh noted that under current conditions, a restructuring plan for the company, which is now being developed by the board of directors and management of Yandex, is considered reasonable and necessary. The corporation's co-founder said he remained interested in helping develop the company's four international startups.

Yandex is a project of my life. And not just mine. All these 30 years we have been doing it together - from scratch, in a global competition, striving to behave openly and honestly... I love you all and hug you all. I miss you so much. Let the new year bring peace to everyone, - added Arkady Volozh in a letter to employees.

After the announcement of Volozh's departure from Yandex during trading on the Moscow Exchange, securities on December 30, 2022 fell by 1.16% to 1791 rubles. apiece. However, by 13.30 Moscow time, the fall slowed down, amounting to 0.63%, 1808 rubles. for paper.

After the publication of Volozh's farewell letter, a TASS source familiar with the situation said that the co-founder of the corporation remained an external consultant. However, this information was denied in Yandex, stressing that Volozh was leaving all positions.

Sources Bloomberg Reuters said that Volozh will develop an international company that will receive several Yandex technologies and businesses^[14]

2023: Arkady Volozh's anti-war post cost him and Yandex $150 million

After the statement of the founder of Yandex Arkady Volozh criticizing the "special operation," the amount of payments due to the Dutch Yandex N.V. for the division of assets decreased from almost $250 million to $70-80 million. This was reported on October 5, 2023 by Frank Media, citing sources.

According to them, the owners of Yandex managed to previously agree on the conditions with the Russian authorities, but after the release of Volozh's statement, the approval of the deal was postponed for almost a month and a half. Then the head of the Ministry of Digital Science Maksut Shadayev proposed to pause the payment and approval of the transaction, "which was done," another source of the portal, familiar with the discussions within the government commission for monitoring the implementation of foreign investments, confirmed (it approves such transactions).

Arkady Volozh

Officials from the commission pay attention to the foreign policy background, - explained one of the sources of Frank Media the reaction of the Ministry of Digital Development. - If it seems to light up in red, then it is somehow stupid for them to make decisions that contradict conventional foreign policy.

In August 2023, Arkady Volozh, who lives in Israel, publicly opposed the Russian military operation (SVO) in Ukraine. He assured that "there were many reasons why you had to be silent." According to him, over the past year he has been asked many questions about his attitude towards the SVO.

I would like to clarify my position. It is important for me to be heard by all parties, "he stressed.

The co-founder of Yandex said that his friends and relatives live in Ukraine, and he is "horrified" by the events in the framework of the special operation. The businessman noted that since 2014 he has not lived in Russia, but understands that he "has a share of responsibility for the actions of the country."

Russian President Vladimir Putin commented on Volozh's statement:

Well, God grant him health, let him live well there. It doesn't particularly hurt us.[15]

2024

Exclusion from the EU sanctions list

The European Union lifted sanctions from the ex-head of Yandex Arkady Volozh. This was reported on March 13, 2024 by the TASS news agency with reference to a resolution of the EU Council, published in the Official Journal of the European Union.

Arkady Volozh was included in the EU sanctions list in June 2022. Information on the reasons for his exclusion from this list is not provided in the document of the EU Council.

In addition to the founder of Yandex, Sergey Mndoyants, executive vice president for state relations with the Russian investment company AFK Sistema, and Josef Gambalek, a Slovak businessman and head of the local branch of the Night Wolves motorcycle club, were excluded from the sanctions list.

Earlier, Reuters reported that the EU Council decided on Volozh on the basis of a "change in his behavior," while Slovak Prime Minister Robert Fico spoke in favor of lifting sanctions against Gambalek.^[16]

Arkady Volozh returns to management of the Nebius Group

Yandex NV founder Arkady Volozh returned to management of a significantly smaller version of the company he created and which sold the leading Russian search engine Yandex.

Yandex NV completed the sale of its Russian business, which accounted for most of its revenue. After shareholder approval, the company will be renamed the Nebius Group and focus on developing its own projects.

Awards and titles

In the ranking of senior leaders - 2010, the Kommersant newspaper took first place in the Media Business nomination^[17]

In the fall of 2010, Arkady Volozh was named the "Leader of the Innovation Company" according to the Russian Venture Company.

In 2011, Volozh was recognized by Forbes in the ranking of 30 key persons of Runet as the "best manager."

On February 11, 2014, the Head of the Cabinet of Ministers Dmitry Medvedev congratulated Yandex CEO Arkady Volozh on his anniversary. "You've dedicated your life to high tech and you've made great professional strides. Largely thanks to you, Yandex has become a national search engine, the leader of the domestic media market, and has gained fame abroad. Every day, millions of people are convinced that everything is really found on Yandex multi-portals, "the message says.

Family

The famous violinist Wolf Lvovich Usminsky is the uncle of the founder Yandex Arkady Volozh. Usminsky is a professor of violin at the Ural Conservatory (g.), Yekaterinburg Chairman state of the Commission of the Moscow Conservatory and member of the jury of many international violin competitions.

Interview

• "We are now adults ourselves," Vedomosti, 2008.
• The main thing is to make it pleasant to work, "World of the Internet," No. 4, p. 74, April 15, 1999.

Notes