October 30, 2020

Volume X, Number 304

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Russia Increases Fines for Violation of its Data Localization Law

Russia’s Federal Law No. 242-FZ, On the Introduction of Amendments to Certain Legislative Acts of the Russian Federation with regard to the Clarification of the Procedure for the Processing of Personal Data in Data Telecommunications Networks, took effect on September 1, 2015 and requires that Russian citizens’ personal data gathered by operators, be stored by servers/data centers located in the Russian Federation (the “Localization Requirement”).  The fine for violation of the Localization Requirements was relatively small (approximately US$160).

On December 2, 2019, President Vladimir Putin signed Federal Law No. 405-FZ, On the Introduction of Amendments to the Administrative Offenses Code of the Russian Federation.  As of December 13, 2019, the Code has introduced new constituent element of an administrative offense – breach of localization requirements.

Operators must ensure the recording, systematization, accumulation, storage, adjustment (update, alteration), and retrieval of personal data of citizens of the Russian Federation will be performed through database serves located in the territory of the Russian Federation. Failure by an operator to comply with the requirement leads to increased fines:

  • for officials – up to RUB 200,000 (approximately US$3,350)

  • for legal entities – up to RUB 6,000,000 (approximately US$100,000)

For repeated violation:

  • for officials – up to RUB 800,000 (approximately US$13,350)

  • for legal entities – up to RUB 18,000,000 (approximately US$ 300,000)

© Copyright 2020 Squire Patton Boggs (US) LLPNational Law Review, Volume X, Number 3
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About this Author

Irina Golovanova Corporate Trade Attorney Squire Patton Boggs Moscow, Russia
Of Counsel

Irina Golovanova focuses her practice on trade and corporate matters in Russia and the CIS. She advises clients on matters of Russian law and practice, particularly in the areas of securities regulation, corporate structuring, assets acquisition and labor issues.

Irina’s work includes purchase and sales of assets and securities, creation of joint ventures and privatization in the CIS. Among other projects, she has represented clients in projects related to oil and gas exploration and production agreements and structuring and restructuring equity and debt investments in agricultural...

7 495-258-5250
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