Yandex NV, the Dutch parent of Russia’s leading tech company, has agreed to sell its core business in Russia to its local managers, oil giant Lukoil and other investors for $5 billion, half of its market value before the war.

The deal is one of the largest exits of Western companies from Russia since President Putin invaded Ukraine in 2022, triggering harsh sanctions and a collapse of the economy.

Yandex, which operates a popular search engine and various apps, faced pressure from the Kremlin and the EU, which sanctioned its co-founder and former CEO Arkady Volozh.

Yandex NV will retain its international businesses, such as self-driving cars and AI, and a data center in Finland. The sale reflects the difficulties of doing business in Russia for foreign companies, which have to deal with legal hurdles, currency restrictions and political risks. Many have sold or written off their assets in Russia, such as McDonald’s and Renault.

Schneider Electric finalizes disposal of Russian business to locals