Russian mobile carriers lost $1 billion in one day after “Yarovaya’s law”


Shares of the largest mobile companies in Russia get cheaper for the second day in a row.

After Russian President Vladimir Putin signed the “anti-terrorism” package of amendments proposed by Senator Viktor Ozerov and MP Irina Yarovaya, the combined market value of the “Big Four” Russian mobile carriers dropped by 66 billion rubles (about $1 billion).

Shares of MTS at Moscow Exchange dropped by 2% on Thursday, and continued to lose another 1.53% on Friday. In less than a day capitalization of the company declined by 16 billion rubles (about $250 million– RRT), and now it is worth 470 billion rubles (about $7.3 billion – RRT).

Shares of Rostelecom dropped almost by 5% on Thursday, and continue to hold the lowest mark since March on Friday. In less than two trading days the company’s capitalization fell by 11 billion rubles (about $170 million – RRT) to the mark of 225 billion rubles (about $3.5 billion).

MegaFon suffered the maximum loss. In two days the carrier’s shares plummeted by 8.1% to their 4-year low. The market capitalization of MegaFon dropped by 35 billion rubles (about $500 million – RRT) to the level of 403 billion rubles (about $6.3 billion – RRT).

The lowest loss yet has affected Vimpelcom: its shares on Nasdaq fell by only 1% during Thursday trading. The company became cheaper by $70 million, and is worth $6.91 billion.

The losses of mobile carriers are quite moderate: the market is still hoping that the government will make some clarifications which will allow to store users’ traffic selectively.

Analysts believe that the amendments of Yarovaya in their current state are unlikely to be fully implemented.