July 10 (Reuters) - Russian traders have finalised a

share exchange for investors in Yandex ( YNDX ), often dubbed Russia's

Google, one of the final steps needed to complete a more than $5

billion deal that will see local investors take control of the

bulk of the technology company's business.

A consortium of Russian investors is leading a buyout of

Yandex ( YNDX ) from its Dutch parent company Yandex NV ( YNDX ) after

months of negotiations, with the parent selling its assets in

Russia at a heavily discounted price due to Kremlin demands on

foreign asset sales.

The deal, the largest by a Western-held company to exit

Russia since the start of the war in Ukraine, will see Yandex's ( YNDX )

Russia-based businesses, which generate more than 95% of revenue

and include search, advertising, e-commerce and ride hailing,

acquired by the Russian investors.

Smaller business units in cloud, data solutions,

self-driving cars and education technology will be developed

internationally by Yandex NV ( YNDX ).

Yandex's ( YNDX ) Nasdaq shares were suspended shortly after Moscow

invaded Ukraine in February 2022, and so the deal will allow

Russian investors to trade the stock again, while foreign

investors hope to salvage something from the international

assets.

Russia's two main bourses, Moscow Exchange and SPB Exchange,

said late on Tuesday a voluntary exchange for investors to

convert their Yandex NV ( YNDX ) shares into shares in the new Russian

entity, MKPAO Yandex, had been completed.

Moscow Exchange said it had exchanged 42.4 million shares

worth a total of 180.3 billion roubles ($2.06 billion) across

thousands of transactions carried out by 99 brokerages. It was

not clear how Moscow Exchange calculated the value of shares.

MKPAO Yandex listed on Moscow Exchange in April

and its shares will begin trading on July 24.

SPB Exchange said it had completed the settlement of the

share exchange for 1.42 million shares purchased through its

bourse.

In early July, the buyer, Consortium.First, said it had

received bids to exchange 43.9 million out of an eligible 50.0

million shares.

A consortium representative said the figure of 43.9 million

represented an estimated 99% of eligible Yandex NV ( YNDX ) shares that

were not held in so-called type C accounts.

The assets of many foreign investors, including both

individuals and major U.S. investment funds, have been

effectively blocked in type-C accounts since Russia invaded

Ukraine in February 2022 and was hit by Western sanctions.

Assets in these accounts cannot be transferred out of Russia

without permission from Russian authorities.

($1 = 87.5000 roubles)