"STS Media" is not having a good time
The State Duma adopted on Friday the law limiting the shares of the foreign investors in the mass media by 20% in the second and third readings. Now the law will be considered by the Council of the Federation, and submitted for signing to the President – after which the document will be fully adopted. The amendments encompass all media assets, including printed and internet media; but they will not affect any media projects that are not licensed as mass media.
It is suggested to enact the limitation on January 1st of 2016. The Russian investors, who own mass media via off-shore companies, will have until February 1st to bring their systems of corporate management and the property chain in compliance with the legal requirements.
Alexander Bolomatov, Advocate and Partner of the Law Firm "YUST": “The sale of their Russian assets will be the easiest way out of this situation for the foreign investors, as 20%, the maximum share allowed by law, is not even blocking. Some assets will probably be sold at a discount due to the hasty sale. And taking into account the political will in the adoption of this draft law, the regulators will be extremely responsive to any “potential gaps””.
Rankings and Partners
