Russia eyes int’l ownership restriction

The Russian government plans to extend a law restricting foreign ownership of channels in the country, posing a threat to ventures from global players such as Modern Times Group (MTG) and Viacom.

The proposed bill would stop international companies holding more than a 20% stake in Russian mass media businesses, and will apply to all existing and future operations. The current law limits foreign ownership at 50% for channels that broadcast to at least half of Russia’s population.

The proposed changes are being finalised by the State Duma today and will be introduced from January 2016 if passed. Existing broadcasters will be given a further year, to 2017, to comply.

Numerous international broadcasters operate in Russia, including Viasat Broadcasting, Viacom, NBCUniversal, Disney, Fox International Channels, Turner Broadcasting, Sony Pictures TV, A+E Networks and Discovery Networks International.

MTG, which has a 38% stake in Russian channel operator CTC Media, said it was “carefully following the progress of the proposed amendments and analysing what potential actions may be taken” if the bill becomes law.

Many foreign broadcasters are already facing the prospect of having to drastically overhaul their business models after the country moved to ban advertising on pay TV channels in July.

Amendments to the current advertising law are waiting to be signed off by Russian president Vladimir Putin and would effectively see all advertising on pay TV and cable channels banned from 2015.

In related news, MTG president and CEO Jørgen Madsen Lindemann has been named co-chairman of CTC Media, while MTG chief financial officer Mathias Hermansson, who stepped down as a board member in April 2013, has re-joined the CTC Media board as a director.

MTG non-executive board member Lorenzo Grabau is stepping down from his role as co-chairman and director to focus on other business interests.