Russia’s Strict Data Collection Law, Effective in September

Alston & Bird LLP recently published an article on Lexology warning that Russia has new data collection rules that will go into effect September 1, 2015. These new regulations will affect U.S. businesses with websites or mobile apps that collect personal information from Russian citizens. The new rule states that companies that acquire personal data from Russian citizens will be required to first process and store such personal information on servers in Russia.

According to this article, this “Russian Data Localization Law” will apply to “every foreign entity that targets Russian citizens, whether through a Russian language website directed at Russian nationals, or as an entity with regional headquarters in Russia.”

Key parts of the Localization Law:

U.S. businesses that do not have pre-existing servers to first process and store Russian citizens’ personal data, will need to set up servers in Russia or contract with a third-party vendor to set up the required local servers in Russia.
The initial collection and processing of data must first occur in Russia, but the data may then be transferred out of the country to a duplicate database, as long as the server has adequate protection of personal data and fulfills the requirements of the Russian jurisdiction.
Companies must obtain written consent from the data subject before transferring data to a cross-border server.
Will apply to foreign companies targeting Russian data subjects, whether or not the companies have a branch or office in Russia.
Will apply to websites translated into Russian, having a single webpage in Russian or having a .ru domain.

The full scope of penalties for noncompliance with this law has not been defined. However, the biggest risk is having your website shut down or having access to your website restricted.

To read the full details of the law, what steps your company needs to take to be compliant and government recommended best practices, please see the full article:
Russia’s tougher rules on data collection effective in September: U.S. companies with websites or mobile apps targeted to Russia beware.

For additional information on Russian’s Data Localization Law, see these other Lexology articles:

Further Resources on Russian Translation and Localization Services

If you are planning to do business in Russia, it is important to understand the needs of your target customers. You will always need to understand the consumer behavior, the language and the key insights about the market.

Globalization Partners International (GPI) has created an extensive overview of globalizing websites for Russian consumers in a white paper, Website Globalization and E-Business Russia, which is available via a free download in PDF format.

Additionally, please review our resources and blogs that are particularly relevant:

Further Resources on Russian Translation and Localization Services

Further GPI Resources on Country Specific Topics