Support The Moscow Times!

Yandex Shares Drop on Draft Foreign Ownership Law

The draft law proposes to limit foreign ownership in significant IT companies to 20%.

Yandex and Mail.ru are among those companies most likely to be affected. Alexander Avilov / Moskva News Agency

Shares in Yandex, Russia's answer to Google, fell by more than 3% Monday after a draft law proposed limiting foreign ownership in "significant" Russian IT companies to 20%.

It is not clear whether the draft law submitted Friday will be approved or amended. But if it is introduced, Moscow-listed Yandex and Mail.ru are among those companies most likely to be affected.

Critics say Russian authorities have taken steps to tighten control of the internet, threatening to stifle individual and corporate freedom. But the Kremlin says it is trying to protect the integrity of the internet's Russian-language segment.

"The adoption of this bill could destroy the unique ecosystem of Internet businesses in Russia, where local players successfully compete with global companies," Yandex said.

Mail.ru has also warned against adopting the law in its current form. "Mail.ru Group plans to take part in the discussion and is confident that the state will find a solution acceptable to all sides," it said in a statement.

Analysts at VTB Capital said there was a good chance, however, that the draft law would be softened, given mixed reactions from various quarters.

Konstantin Noskov, minister of communications, has said he opposes the initiative which he fears would hurt Russian companies by damaging their ability to compete globally.

"I absolutely don't support this idea," Noskov said. "The companies against which the bill is directed, in particular, Yandex and Mail.ru, are our national treasure," he told Reuters on Monday.

Under the draft law, which if approved would come into force from Jan. 1, 2020, any companies which did not comply would not be allowed to promote themselves or others inside Russia.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more