Page 9 - bne_Tech_11_2019

Investment
November 2019 www.intellinews.com I Page 9
When the original draft was presented in October the shares in Russia’s biggest and most valuable tech company Yandex crashed but the backlash against the more stringent version has been substantial as Russia’s tech sector is booming.
Believing passage of the legislation to be inevitable, Russia’s leading business lobby group, the Russian Union of Industrialist and Entrepreneurs (RUIE), has come out in support of the government’s proposed changes to Gorelkin’s draft law.
The compromise has been to increase the cap from 20% to 49%, which given the structure of shareholding in both Yandex and its closest rival Mail.ru means no one will have to sell any shares.
“If the bill only considers voting shares, tech giants Yandex and Mail.ru will not need to alter their ownership structures,” BMB said in a note.
Huawei building Hungary's 5G network
Chinese telecommunications giant Huawei
is building a fifth-generation (5G) network in Hungary, said Peter Szijjarto, Minister of Foreign Affairs and Trade, at the Hongqiao International Economic Forum in Shanghai on November 5.
The US has piled pressure on European allies including Hungary, to shut out Huawei from network development on concerns that back doors in the system would enable the company to spy on other countries. With the decision to pick Huawei, the government has sent a clear message to global political and economic actors.
“Judging by Gorelkin’s reaction to the government’s proposal, the Kremlin seems likely to accept this compromise. This will mean temporary relief for Yandex. But don’t expect the Kremlin to give up
on its ongoing efforts to bring Yandex to heel.”
Peter Szijjarto with Chinese Commerce Minister Zhong Shan
During the opening day of the second China International Import Expo (CIIE) Szijjarto emphasised that Hungary does not discriminate between companies on the basis of nationality, the only condition it imposes is to comply with the country's laws and regulations.
Huawei will work with the UK's Vodafone and Deutsche Telekom on the rollout of 5G services, he added.
Considering that Sino-Hungarian economic and political relations have never been so good,