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How global companies can continue doing business in Russia

More and more global companies find themselves under scrutiny by Roskomnadzor due to their failure to comply with federal law No. 152-FZ (with amendments 242-FZ). By law, global companies must store the data of Russian users within the territory of the Russian Federation.

We’ll explain how to do business in Russia legally and without hassle.

What does the law say?

Federal Law No. 152-FZ “On Personal Data” dated July 27, 2006 (with amendments 242-FZ dated July 21, 2014) requires the localization of personal data (PD) in Russia. This means that a global company that serves Russian customers must ensure the recording, systematization, accumulation, storage, and clarification of their personal data by using databases located within the Russian Federation.

Note, that the very concept of personal data does not only include full names, dates of birth, passport data, and addresses, but any information that relates to a specific person or persons. For example, a phone number or email address by itself is not PD, as it’s not clear exactly to whom this data belongs. But, if we’re talking about any kind of database with the full names of customers and their contact information, then this case falls under the definition of PD. It also includes unique information about a person: fingerprints, genetic information, or health data.

When does a global company fall under the law?

Even if a company doesn’t maintain a Russian customer base (which is now rare), it falls under the law in the following cases:

  • there is a Russian-language version of the website or a Russian domain;
  • customers pay for services or goods in rubles;
  • users see ads in Russian on the website.

The law doesn’t exclude the possibility of the cross-border transfer of personal data of Russian citizens—the operator may transfer information to other countries. However, this data should be stored only within the territory of the Russian Federation. If necessary (for example, a person is on vacation abroad and needs medical assistance), the company has the right to temporarily keep a copy of the PD locally. But this data must be deleted as soon as the Russian citizen returns home.

Also, the legislative requirement on the localization of PD doesn’t apply to a number of organizations, such as visa issuing companies, air ticket sellers, media outlets, and courts.

Who enforces the law?

Roskomnadzor monitors the implementation of the law “On Personal Data”. This office, based on court rulings, creates a register of violators and can block the websites of companies that are on it. Liability also includes a fine. Moreover, starting from 2019, the amount of this fine for the company can reach several million rubles.

How can G-Core Labs Cloud help?

In this legal situation, the best solution for global companies is to employ the services of cloud providers with data centers in Russia. G-Core Labs is just such a provider.

We provide global companies with infrastructure that meets the requirements of Russian law.

Avast, Michelin, Wargaming, Joom, Sandbox Interactive, Bandai Namco, and RedFox Games are among our international customers.

How global companies can continue doing business in Russia

In addition, moving to the G-Core Labs cloud entails a number of important business benefits.

High availability. 99.95% SLA with financial guarantees: in the case of downtime of key elements of the IT infrastructure that goes beyond the scope of this agreement, we are ready to compensate you. Thanks to our reliable data center, however, it rarely comes to that.

Quick deployment. In just a few minutes, an IT infrastructure of any scale can be created, regardless of the industry and size of your business.

Unlimited scalability. At all of our data centers, the fault tolerance is as close as possible to 100%, and there are measures in place against system crashes. Your company can use one or hundreds of virtual machines and store an unlimited amount of data.

Reduced capital expenditures and financial transparency. Moving your infrastructure to G-Core Labs Cloud doesn’t require a payment or minimum fees, and there are no additional installation or configuration costs. Our billing is based on the pay-as-you-go model. The customer only pays for the resources they use.

24/7 support. Our specialists fully undertake technical support, which allows your company to focus on business.

Reliability. A disaster recovery service will help protect your business from downtime during various failures (for example, if the database is accidentally deleted on the production server).

Bare metal. Our cloud service allows you to deploy applications on dedicated servers.

Easy migration. For any global company, migration to our cloud is a fast and secure process which retains all the necessary data.

S3 storage in Moscow

The S3 cloud object storage in Moscow was created for safely storing large amounts of data.

This service will be of interest to game developers, providers of multimedia online services, and owners of highly loaded resources.

How global companies can continue doing business in Russia

Cloud storage helps reduce the cost of building and maintaining your own IT infrastructure. Through uninterrupted access and unlimited scalability, it allows you to increase the flexibility of your business processes.

The S3 storage is very convenient to use together with our cloud services and a global CDN.

You can also manage access to shared datasets and object lifecycles, set the interval for deleting backups, and automate this process.

Variety of virtual machine configurations

Also, any company can host their own virtual cloud or connect to dedicated virtual servers with various configurations of CPU, RAM, and GPU for any computing tasks and projects.

How global companies can continue doing business in Russia
Virtual machine configurator

Are you planning on storing and processing the personal data of Russian customers? Take advantage of our cloud solutions today or get started with a free consultation with one of our experts.

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