Yandex.Direct is AdWords of Yandex. It works almost the same way and looks very similar.
This week Yandex has started to show up to 3 sponsored links above organic search results, while before the maximum amount of paid ads was 2. Yandex claims that this will affect only the most competitive keywords, i.e. not more than 2% of all queries.
According to SearchEngines.ru Internet audience is not very fond of increased amount of paid listings. A large amount of people have screens with resolution lower than 768px (e.g. netbooks users) and cannot see organic search results at all.
In blogs and forums Yandex is being compared with Chinese Baidu, where all 10 top results can be paid listings =)