The State Duma of the Russian Federation discussed a decision on limiting the participation of foreign investors in the media. It significantly affected the leading Russian information resources shares value.
Thus, yesterday, October 11, Yandex shares fell 18% on the Moscow Exchange, as a result, the company fell immediately by 100 billion rubles ($1.53 billion). The opening trading on the US NASDAQ only confirmed the Yandex securities downward trend. At the same time, the value of Mail.ru Group shares fell by 3% on the London Stock Exchange.
Yandex shares in near free-fall as Kremlin reportedly ready to back plans limiting foreign shareholdings in Russian tech companies.$YNDX ⬇️ 18% since U.S. market opened.
More than $1bn wiped from market cap.
— Jake Cordell (@JakeCordell) October 11, 2019
Analysts think, the reason for this is the Political Party United Russia representative`s bill, which proposes to limit the share of foreign capital in “significant information resources” to 20%. If a company refuses to comply with such a requirement – to limit the voting rights of foreigners to the same 20%, and punish the resources with a ban on advertising.