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Law on IT-resources ownership will affect all IT companies in Russia — Yandex

A spokesman for the Yandex internet company said that "if the bill is passed, a unique ecosystem of internet businesses in Russia can be destroyed"

MOSCOW, July 26. /TASS/. The draft law on limiting foreign participation in Russian IT-resources to 20% will negatively affects all IT companies operating in the country and as a results end users will also suffer from it, a spokesperson with the Yandex internet company told TASS.

"If the bill is passed, a unique ecosystem of internet businesses in Russia can be destroyed, where local players successfully compete with global companies. As a result, end users will suffer. We believe that the bill should not be adopted in its current form and are ready to participate in discussing it," the company’s representative said.

Earlier on Friday, Anton Gorelkin, a representative of the United Russia party and a member of the State Duma Committee on Information Policy, Information Technologies and Communications, proposed limiting foreign ownership of the Russian information resources which are important for the country’s information infrastructure to 20%. He submitted the relevant draft law to the State Duma, lower house of parliament.

He told TASS that the draft law will concern Yandex and in case it is adopted, the internet company will have to change its ownership structure.

According to public information, the main shareholders of Yandex NV are Arkady Volozh, who owns 10.35% of the company's shares and has 49.23% of the votes, Vladimir Ivanov (3.84% of the shares and 6.36% of the votes), OppenheimerFunds Inc. (5.65% of shares and 2.76% of votes), Harding Loevner LP (4.82% of shares and 2.35% of votes), and Wellington Management Group LLP (4.58% of shares and 2.24% of votes). In total, the majority shareholders and the management control 29.2% of the shares and 62.26% of the vote.