Fascinating update by Alla Naglis and Xenia Melkova from King & Spalding on the new Russian data localisation bill, which introduces much larger fines for breaching the regulations.
Although this seems primarily aimed at large IT providers such as Google and Facebook, it has implications for a dispute and/or investigation where data is often a critical component of any successful project. We have worked on many Russian-related projects where circumstances have dictated that the data needs to remain in-country and often within the client's own facilities. This is true whether it be an internally or regulatory driven investigation, a case heard within the UK courts, or an international arbitration matter. The new legislation will only increase the necessity and frequency for in-country solutions.
For these to be successful there are two important factors that need to be considered:
- Having suitably mobile and scalable technical solutions that allows for even the largest data sets to be effectively and efficiently captured, processed and reviewed within a confined environment; and
- Most importantly, having a team that appreciates the technical, process and cultural challenges such an approach encounters.
With these projects, having a local team in Russia (http://bit.ly/2Lo1BPF) to work alongside as well as having the experience and appreciation of working in the region ensures that the challenges can be successfully resolved.
A&M has a full suite of Russian capabilities and experiences in the data regulation space. Would love to hear about your current challenges and talk to you about how my team and I can help.
On June 13, 2019 a bill of law entered Russian State Duma to introduce to the Code of Administrative Offense administrative fines for failure to comply with the requirements for localization of processing of personal data of the Russian citizens. Proposed fines for first offense amount to RUB 2,000,000 – 6,000,000 (approximately US$ 30,000 – 90,000) for legal entities. Repeated offense by legal entities is punishable with fines in the amount of RUB 6,000,000 – 18,000,000 (approximately US$ 90,000 – 280,000).