Investors bailed on shares of Yandex (YNDX) - Get Report Friday after the Kremlin threw its support behind a bill that would restrict foreign ownership of Russia's largest internet provider and other tech firms in the country.
Yandex's stock price plunged 18.48% to $28.99 a share after Bloomberg, citing sources familiar with the issue, reported the presidential administration in Russia supports a proposal in the lower house of parliament that would cap foreign ownership to 20% for companies falling under the broad category of "significant information resources."
Elena Bunina, general director at Yandex, warned lawmakers at parliamentary hearings on the proposal that it would crimp investment in Russian tech companies and hurt their expansion internationally, according to the news service,
Russia's top search engine, Yandex has expanded its reach within the country to embrace services like food delivery and taxes.
The company is set to report third-quarter earnings on Oct. 25. The push to restrict foreign investment in Yandex comes as Russian officials increasingly levy fines against Alphabet, the parent company of Google, including a $6.8 million antitrust fine in 2016 sparked by a complaint from Yandex.