President orders limit on foreign ownership in Russian mass media

Reuters / Lucy Nicholson

Reuters / Lucy Nicholson

Vladimir Putin has signed into law a bill, which sets the maximum foreign stake in Russian mass media companies at 20 percent.

The law will come into force on January 1, 2016, and media
companies must submit reports on their stockholders before
February 15, 2016.

The bill was drafted by opposition MPs in September and passed by
parliament very quickly. Apart from lowering the maximum share in
Russian mass media companies allowed for foreign citizens and
firms from the current 50 percent to 20 percent, the draft bans
foreigners from being founders of Russian mass media companies.
The same restrictions apply to residents without citizenship and
Russians who have citizenship of other nations.

There are exceptions for media derived from state-level
international treaties, like Mir television, which was founded
jointly by several CIS nations.

The sponsors of the motion said the main reason behind it was the
desire to provide maximum information security. They also noted
that the 20 percent limit was chosen because a 25 percent share
would enable a powerful veto possibility, allowing its owners to
exert serious influence on the information policy of any media
outlet.

Those who own information own the world. It is obvious that
when foreigners enter the mass media market of any country they
practically gain access to people’s minds, to forming public
opinion. And we must draw a clear line here – what are the
reasons behind such purchases? Do they want simply to do business
or do they want to enforce their policies and to change the
situation inside the country?
” asked MP Vadim Dengin of the
nationalist LDPR caucus.

Russian rights activists criticized the law during the
parliamentary debates. The head of the Presidential Human Rights
Council, Mikhail Fedotov called it “useless” on
Wednesday, claiming that a trained lawyer would have no problems
in bypassing it. “I think that nothing good can come from
this law, but there is no harm from it either
,” the Interfax
news agency quoted Fedotov as saying.

The new Russian law is in line with international practice as
many countries in the world have already protected their
informational space from excessive foreign influence. For
example, Australia has set a 30 percent limit of foreign
ownership in national mass media and Canada has a law limiting
foreign ownership in electronic mass media by 46 percent. The
United States allow foreigners to control not more than 25
percent of American TV and radio stations, while Japan has set
this limit at 20 percent. France will not allow non-EU citizens
and companies to possess more than 20 percent of its mass media.
In the UK, the shares of foreign stockholders in mass media
corporations cannot exceed those owned by British investors.

Current foreign ownership in Russian mass media is fairly high,
especially in the magazine and newspaper business where 60
percent of companies have significant foreign shareholders. Some
printed media companies are owned by businessmen, who hold dual
citizenship, and these individuals will, under the new law,
become ineligible to continue as owners.


Source Article from http://rt.com/politics/196084-russia-mass-media-foreign/

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