How global companies continue to do business in Russia

The Russian market is Europe’s largest source of potential users for international companies. Moreover, according to ITA, Russia’s online market is one of the largest markets in the world and has great potential. By 2025, there will be 124 million Internet users. This is an attractive number for any business. However, recently, due to non-compliance with Russia’s Personal Data Act (Federal Law 152-FZ), more and more global companies are under the supervision of the Federal Service for Supervision of Communications, Information Technology and Mass Media (Roskomnadzor). It is increasing more and more. These rules require global companies to store data of Russian users in Russia. This is the same as the GDPR requiring the data of European citizens to be stored in Europe. We decided to investigate the situation and explain how to do business legally and effortlessly in Russia.

What does the law say?

Federal law 152-FZ, in its current form, requires the localization of personal data (PD) in Russia. This means that global companies servicing Russian customers need to use databases located in Russia to ensure that personal data is recorded, systematized, stored, stored and clarified.

Please note that the concept of personal data includes not only your name, date of birth, passport data, and address, but also your address. Any Information related to a particular person. For example, the phone number or email address itself is not a PD. This is because we don’t know exactly who this data belongs to. But if you’re talking about any kind of database, including the customer’s full name and their contact information, this is the definition of PD. This definition also includes unique information about the individual, such as fingerprints, genetic information, and health data.

When do global companies fall under the law?

Even if the company does not maintain its Russian customer base (which is now rare), the law applies if:

  • There is a Russian version of the website or a Russian domain.
  • Customers pay for services and goods in rubles.
  • Users will see ads in Russian on their website.

In short, the new law will affect all kinds of businesses with Russian customers and even visitors, from social media services and online publishers to streaming services.

Who enforces the law?

Roskomnadzor oversees the implementation of the Russian Personal Data Act. The office may, based on a court ruling, create a register of offenders and block the websites of companies above it. Liability also includes fines. Starting in 2019, this fine can reach tens of thousands of dollars.

How can we help?

In this legal situation, the best solution for global companies is to adopt the services of cloud providers in Russian data centers like G-Core Labs.

We provide global companies with an infrastructure that meets the requirements of Russian law. Overseas customers include Metro Cash & Carry, Volkswagen, Avast, Michelin, Wargaming, Joom, Sandbox Interactive, Bandai Namco and RedFox Games.

In addition, migrating to the G-Core Labs cloud comes with many important business benefits.

  • High availability.. 99.95% SLA, with financial guarantee in case of downtime. But thanks to reliable data centers, that is rarely possible.
  • Rapid deployment.. Create IT infrastructures of all sizes in minutes, regardless of industry or business size.
  • Unlimited scalability. Fault tolerance in all data centers is as close to 100% as possible and measures are taken against system crashes. Companies can use one or hundreds of virtual machines to store an unlimited amount of data.
  • Reduced capital investment and financial transparency.. No payments or minimum fees are required to move your infrastructure to the cloud. It also has no additional installation or configuration costs. Billing is based on a pay-as-you-go model. Customers pay only for the resources they use.
  • 24/7 support.. Our specialists take full advantage of technical support to help your company focus on your business.
  • reliability.. Disaster recovery services help protect your business from downtime during various failures (for example, if your database is accidentally deleted on a production server).
  • Bare metal.. Our cloud service allows you to deploy your application to a dedicated server.
  • Easy migration.. For global enterprises, moving to the cloud is a fast and secure process that holds all the data you need.

Moscow S3 storage

We created S3 cloud object storage in Moscow to securely store large amounts of data in compliance with Federal Law 152-FZ. This service is of interest to game developers, multimedia online service providers, and heavy resource owners.

Cloud storage helps reduce the cost of building and maintaining your own IT infrastructure. Uninterrupted access and unlimited scalability give you greater flexibility in your business processes.

S3 storage is very useful when used with cloud services and global CDNs.

You can also manage access to shared datasets and object lifecycles, set intervals at which backups are deleted, and automate this process.

Various virtual machine configurations

Any company can host their own virtual cloud or connect to a dedicated virtual server with different configurations of CPU, RAM, and GPU for computing tasks and projects.

The G-Core Labs infrastructure is based on Intel solutions, including the latest 3rd generation Intel Xeon Scalable (Ice Lake) processors. Intel SGX’s sensitive data protection technology is also integrated into the G-Core Labs cloud.

Seva Vayner is Head of Cloud Platform at G-Core Labs.

How global companies continue to do business in Russia

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