In about two weeks' time the extended geotargeting option will be enabled for all ad campaigns on Yandex.Search. This setting can allow your ad to be seen not only by users from a selected region, but also by those that use the region name in their query, which can be from anywhere in the world. For example, say users from Berlin searched for такси в Москве (taxi in Moscow).
With this new option, advertisers can significantly extend the reach of their ad campaigns, while Yandex users will receive more relevant suggestions for specifically-defined local queries.
Let's suppose that your keyword is: авто для переездов (vehicle for moving). You have set the ad's display region as Smolensk, and now your ad will appear only to users from Smolensk. With extended geotargeting, the ad can be shown further to users from different cities who use the query авто для переездов в Смоленске (vehicle for moving in Smolensk) and other similar queries that include a location name.
This option is enabled automatically and will function by default in all new campaigns. If necessary, you can disable it beforehand in the display region settings via the Yandex.Direct web interface, Direct Commander, or the Yandex.Direct API.
More details about the new option can be read in the relevant help section.