Discovery Moves Russian Channels to Venture With Putin Ally
- Deal helps Discovery meet Russian foreign ownership rules
- Venture will be 80 percent controlled by local partner
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Discovery Communications Inc. will move its Russian business to a venture with a company co-owned by billionaire Yury Kovalchuk, a longtime ally of President Vladimir Putin, to comply with laws that will limit foreign ownership of media next year.
The venture, called Media Alliance, will license and distribute the Discovery and Eurosport channels and will also create a local free-to-air channel, Discovery said in a statement Thursday. Alina Kabaeva, an Olympic champion rhythmic gymnast, was appointed chairman of Kovalchuk’s National Media last year after stepping down as a lawmaker for the ruling party United Russia.