The daily, citing unnamed sources within Yandex, reported that the browser should be available in the fourth quarter.
Yandex, known as the 'Russian Google' and which raised $1.4 billion when it floated on the U.S. Nasdaq stock exchange in May 2010, declined to comment.
In the past, Yandex has accused Google of making it difficult to use rival search engines, including Yahoo and Yandex, with Google's Chrome browser.
According to LiveInternet, Yandex's share of the Russian search market averaged 60.4 percent in the second quarter.
In July, Yandex reaffirmed guidance for 2012 revenue growth of 40-45 percent in rouble terms, after 60 percent in 2011.
Copyright Thomson Reuters 2012
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