In Russia comes into force a law on the limitation of foreign capital in the media

In Russia comes into force a law on the limitation of foreign capital in the media

MOSCOW, January 1. The law limiting the share of foreign shareholders in the authorized capital of the Russian media at 20% and banning foreigners to be founders of mass media takes in Russia today.

The law was approved by the Federation Council on 1 October 2014 and 15 December of the same year, signed by the Russian President Vladimir Putin.

The requirements of the law

According to the law, now citizens of other countries, and Russians with dual citizenship are forbidden to act as founders of mass media in Russia and the share of foreign shareholders in the authorized capital of the Russian media may not exceed 20%. The media owners are given time until 1 February 2017 to bring the entire corporate chain in accordance with the law, and new documents on owners and founders must be submitted to Roskomnadzor not later than 15 February 2017. In case of violation of Roskomnadzor appealed to a court for suspension of mass media activities.

Clarification Of Roscomnadzor

The head of Roskomnadzor Alexander Zharov’m sure all the major media will comply with the terms of the law on the participation of foreigners in equity. “We had consultations and meetings with almost all large media companies with foreign participation. As for big media, I’m sure they all will execute it (the requirement of the law – ed.) and will comply. They consulted with us: how out if there are errors in that diagram that they used,” – said Zharov.

He noted that “if the company did not notify Roskomnadzor, it does not mean that it has not fulfilled the law”. “And in this case we will check the few dozen media outlets that will remain”, – said Zharov.

In addition, he stressed that the Agency is waiting until February 15, 2016 information from small and medium media. “In total we have registered around 1 thousand of the media in varying degrees, with foreign participation. We wait until 15 February information from them and will be after February 15, to check,” he explained.

See also

Restrictions on the participation of foreigners in the media. Dossier

Now Roskomnadzor is also working with the corporate media, and they were able to meet the requirements of the law. “A separate issue is the corporate media. Now we concentrated on the explanations and work, how to implement the law. Here the solution is quite simple – firstly, they have to produce 999 copies, in order not to get hit by 1000 copies that we begin to control, and second, to distribute their corporate information online,” concluded the Minister.

Foreign experience

In the U.S. a foreign company (or foreign citizen) cannot own more than 25% ownership in the etheric body – and radio companies. Restrictions on foreign investment in print media not.

In Canada the share of foreign capital in television and radio broadcasting channels (terrestrial, satellite and cable broadcasting) may not exceed 20%. The share of foreign participation in media holding cannot be more than 33.3 per cent. In recent years the country debated the question of mitigation of this rule to attract foreign investment.

In the UK excluded foreign participation in public television and radio, particularly BBC (public service broadcasting assumes a special form of ownership in which the channel does not belong either to the state or to private individuals or companies). Shareholders of private channels can be citizens of the countries-EU members and companies located on the territory of the Kingdom. In the field of print media there are no restrictions.

In France foreigners are citizens of the EU can have up to 49% of the share capital of the company carrying out terrestrial broadcasting on the territory of the whole country, and 33% in a company engaged in local broadcasting. Citizens of other countries is limited to 20% of the share capital. Satellite and cable companies restrictions on foreign capital have not. Companies or citizens from EU countries cannot own more than 20% of the shares of national daily Newspapers. This rule does not apply to magazines and local publications.

See also

What changes await the Russians in 2016