CTC Media, Russia’s leading independent media company, has released another official statement after the proposed amendments to the Russian law “On Mass Media” passed their second and third readings in the lower house of the Russian parliament (the State Duma) on Friday September 26, 2014, with only minor changes to the initially proposed drafts. The amendments, which would impose further restrictions on foreign ownership of mass media (including television broadcasters) in Russia, now progress to a reading in the upper house (the Federation Council) and, if approved, for Presidential signature.

The company said: “As previously indicated, the proposed legislation (in its current form and if enacted) would limit direct or indirect foreign ownership of Russian mass media businesses, and applies to both existing and future foreign ownership interests. The law would come into force on January 1, 2016, by which time each Russian mass media entity (including television broadcasters) would have to comply with the requirement that non-Russian entities and individuals in the aggregate beneficially own no more than 20% of the relevant mass media entity. Russian entities and individuals that beneficially own more than 20% of Russian mass media businesses through off-shore holding structures will have an additional year until January 2017, in which to restructure such foreign holding structures.”

“We are carefully evaluating the impact on CTC Media of these proposed amendments to the Mass Media Law,” commented Yuliana Slashcheva, CEO of CTC Media. “While we do not currently expect this law to adversely affect our operating business, it does have substantial implications for our corporate structure and stockholders. We are therefore, together with our advisors, analyzing the potential outcomes of the implementation of this legislation, and considering all actions that we and our stockholders may take in order to comply with it and to protect stockholders’ interests.”

CTC Media is a Delaware corporation that directly and indirectly owns 100% of the shares of a series of Russian legal entities that operate primarily broadcast media entertainment businesses in Russia and the CIS. CTC Media’s shares are listed on the NASDAQ stock exchange in the US and its stockholders include MTG Russia AB (100% directly and indirectly owned by Swedish listed company Modern Times Group MTG AB), which holds approximately 39% of CTC Media’s common stock; Telcrest Investments Limited (a Cypriot private limited company that is beneficially owned by Russian entities and individuals), which holds approximately 25% of CTC Media’s common stock; and a number of public stockholders including US and European institutional and individual investors, which together hold the remaining approximately 36% of CTC Media’s common stock.