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Foreign IT companies may be obliged to open local offices in Russia

A bill introducing new obligations for foreign IT companies with a daily Russian audience of 500,000+ users has been laid before the Russian State Duma.

Such companies will be obliged to:
• open an personal account on the website of Roskomnadzor (the federal mass media watchdog)
• open a branch, a representative office, or a subsidiary in Russia
• create an online feedback form for Russian users.

The same requirements will apply to hosting providers, advertising system operators, and the so-called ‘online information distributors’.

Sanctions for non-compliance will include inter alia a ban to transfer money and accept payments from Russian users.

According to the explanatory note, the bill is aimed to ensure the equal treatment of Russian and foreign IT companies and establish a legal framework for IT companies delivering services to Russian users.

Source Deloitte

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