Human cloud, ride-sharing firm Uber and Russian company Yandex agreed to form a new company that will combine the firms’ rides operations, as well as UberEATS, in six countries. The countries include Russia, Azerbaijan, Belarus and Kazakhstan, as well as Armenia and Georgia, where Uber currently does not operate.

It is Uber’s second step-back from a major market as Didi Chuxing, a China-based ride-sharing firm, last year struck a deal to acquire the assets of Uber China, including its brand, business operations and data.

Pierre-Dimitri Gore-Coty, head of Uber’s business in Europe, the Middle East and Africa, announced the transaction in an email sent today to Uber employees. He said Uber is investing $225 million cash in the new company and its 36.6% ownership stake will be worth almost $1.4 billion; the San Francisco-based company will fill three of the seven seats on the new company’s board.

Business Insider reports diversified internet giant Yandex — which it describes as diversified internet giant and the dominant player in Web search, maps and mobile navigation in the region — agreed to invest $100 million and own 59.3% the new company; employees have a 4.1% stake.

The transaction is expected to close in the fourth quarter and is subject to regulatory approvals and other conditions. The Uber and Yandex brands and rider apps will continue to operate for the “foreseeable future”; the driver apps will be integrated after the transaction closes. The new company will initially serve more than 35 million trips each month and operate in 127 cities in six countries across the region.

“This is an exciting opportunity in a unique situation and our operations in other countries will not be affected,” Gore-Coty wrote. “The new company’s goal will be to serve the needs of riders, drivers and cities as we develop a fast-growing, sustainable ridesharing, food delivery and logistics business in the region. Combining Yandex’s local expertise in search, maps and navigation with our leading global experience in ridesharing will enable us to build the best local services and provide a credible alternative to car ownership across the region.”

Uber has invested around $170 million in the past three years to expand business into the countries served by the new entity.