OREANDA-NEWS. October 17, 2014. CTC Media, Inc. (“CTC Media” or the “Company”) (NASDAQ: CTCM), Russia’s leading independent media company, notes that the amendments to the Russian law “On Mass Media” have now been signed by the President of the Russian Federation and thereby become law.

As previously announced, the amendments impose further restrictions on foreign ownership of mass media (including television broadcasters) in Russia.

The amendments reduce the permitted level of aggregate foreign ownership of Russian mass media from 50% direct ownership to 20% direct or indirect ownership or control. The legislation applies to both existing and future foreign ownership, and will come into force on January 1, 2016. The amended law will affect CTC Media itself, as a Delaware corporation that directly or 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, and then the non-Russian stockholders of the US holding company. Russian beneficial owners holding through off-shore holding structures will have until January 1, 2017 to comply with the law.

CTC Media’s Board of Directors has formed an advisory committee consisting of non-executive Directors, which is in the process of appointing international and local financial and legal advisers, and evaluating the potential actions that the Company may take moving forward in order to comply with the amended law. These actions may include corporate restructuring, franchising and licensing structures, capital reorganization or divestments. CTC Media is also in dialogue with other media companies that are affected by this change in the law.

“While these new legal requirements are not expected to directly adversely affect our operating business, they do have significant implications for the ownership structure of our Russian operating business by our American parent company and its international stockholders,” commented Yuliana Slashcheva, CEO of CTC Media. “We are analyzing our alternative courses of action in these circumstances, in order to comply with the law and best protect the interests of our stockholders.”