Foreign Companies to Be Allowed to Hold Only 20% of Major Russian Internet Firms

In the latest in a series of steps by the Russian government to tighten online control, the country could limit foreign ownership in its most important Internet companies to 20 percent, The Bell reports

A bill submitted to parliament on Friday by Anton Gorelkin, a member of the ruling United Russia party, would prevent foreigners, including companies, from owning more than a fifth of “significant” Russian online operators, including Yandex and

Yandex, sometimes called the Russian Google, is the nation’s largest Internet company by value, offering a wide range of services including search, e-mail, text, and trading. controls the nation’s two largest social media platforms, Vkontakte and Odnoklassniki.

Yandex is registered in The Netherlands, and about 85 percent of its shares trade on the Nasdaq stock exchange in New York. Founder Arkady Volozh has a foreign passport, Russia media said.

“Nobody doubts that Yandex is the main target of the bill,” The Bell, a Russian online news site, wrote in a commentary.

The state wants people with Russian passports controlling and running Yandex, the site said, citing unidentified sources. The Bell said the bill was developed in the presidential administration., which is traded on the London Stock Exchange, is partially owned by Alisher Usmanov, a tycoon with close ties to the Kremlin.

Submission is just the first step in the process that could lead to a bill becoming law, as it must be debated in parliament at least three times before progressing.

Yandex and have both come out against the bill in its current form, and it could face further opposition over concerns it could hurt other Russian online companies and impact the nation’s investment climate.

Russia’s Internet industry is one of the nation’s most attractive as more of its nearly 150 million citizens shift to buying goods and services online.