While Yandex previously offered some locally relevant search suggestions, now all of Yandex's search suggestions are based on a user's location. The search suggestions appear in the same bar but are broken out by city.
The example below searches Moscow, St. Petersburg, Novosibirsk, Perm:
The purpose is purported to be more than one of caching results, of which search suggestions play a useful role in reducing server load and improving site speed:
"This function allows tracking the difference in users' interests from city to city.
So, the users in Moscow searching for paper more often than not want to find printer paper, and the paper that the users in Saint Petersburg need is an embossed kind, while those who live in Perm look for Snegurochka, a specific brand of office paper."