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<b><i>Online Extra:</b></i> New Russian Data Residency Law Will Soon Take Effect

By Ed Silverstein
March 30, 2015

There is a new Russian data residency law that will likely impact many companies, which somehow have business connections with Russia.

The law is actually more far-reaching that some businesses may realize at first glance. It will touch many firms, especially those involved with the cloud, e-commerce, Internet, social media, as well as communications and information technology.

Lothar Determann, an attorney at Baker & McKenzie and lecturer in law at the University of California, Berkeley, explained to Legaltech News that companies affected by the new law include those:

  • Which have a 'presence' in Russia, such as a subsidiary, branch or representative's office there;
  • Who have customers in Russia, such as an Internet or social media company that has users in Russia;
  • Which have customers, who have customers or a presence in Russia, such as cloud service providers. Their customers may ask about compliance solutions for the new law, Determann explained; and
  • Those companies with suppliers in Russia, such as a development center.

'That means pretty much any company with an international business is affected'to some degree,' Determann said. 'What the effect for a particular company's bottom line is'depends on how significant the Russian ties are for the company.'

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