Page 109 - RusRPTMay20

2-year delay in an annual 15% increase in storage capacity under Yarovaya law and exclusion of traffic of video services from the law’s scope (which jumped after the self-isolation period started in Russia). Reportedly, other support measures suggested – cut in spectrum fees until 2020 and delay in tax payments for carriers modernizing telecom networks to expand capacity. According to Kommersant, the draft ruling is based on suggestions from the telecom industry. We see limited net impact for carriers from anti-virus measures and macro weakening. Delay in data storage increase and cut in spectrum fees (reportedly in the draft ruling) could help ensure no extra CapEx jump, despite RUB/$weakening.
Yandex and Mail.ru Car-sharing temporary suspended in Moscow.
Car-sharing services suspended in Moscow for week of 13 April. The city mayor announced the suspension late on Friday as he toughened antivirus measures. In his statement he claimed it was hard to sustain a disinfection regime in car-sharing, while demand had already plummeted (down 60%) as the measures to prevent the virus' spread rolled out. Unsurprising given the circumstances and we note demand has already fallen in Moscow, the key market. Still, with services continuing to pay for car lease, a total absence of revenue (at least for a week) is another factor on EBITDA losses. To remind, Yandex includes car-sharing in its Experiments segment. In 2019, the segment accounted for 9% of Yandex’s revenue and had EBITDA loss equivalent to 10% adjusted EBITDA. Mail.ru's exposure is in YouDrive car-sharing (now should be a part of Mail.ru’s 50/50 JV with Sberbank).
A bill on online sale of pharma drugs during epidemics and emergencies was signed by President of Russia Vladimir Putin into law on April 3.​ The document’s version is published on the official website of legal information. The document is to amend laws on information and medicine circulation. Under the law, online sale and delivery of over-the-counter drugs and prescribed medicine except potent narcotic drugs and psychotropic substances will be available during epidemics and emergencies; in the current situation – until December 31. The e-trade procedure is to be determined by the government. The State Duma passed the legislative proposal on April 1; the Federation Council approved it on April 2
109​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com