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However, this interpretation may not offer much of a reprieve, as that interpretation only applies if no changes are further applied to the data.From September 2015 onward, any processing of personal data of Russian citizens (namely, the recording, systematization, accumulation, storage, update, change, or retrieval of personal data) should be done in accordance with the new data localization requirement, even if collected and stored abroad before the effective date.Employee-related data Similar to the international treaty exemption, the Data Localization Law provides an exemption for personal data processed for the purpose of pursuing objectives envisaged by Russian law.The contours of this exemption are unclear, and many have asked the Ministry of Communications to clarify whether it exempts organizations from applying the localization requirements to the personal data of their employees, the processing of which is subject to certain legal requirements.The guidance, however, further states that because of the Internet’s transborder nature, certain Internet activity may be considered to be conducted within the territory of Russia, and therefore is subject to the localization requirements.For example, a website may be deemed subject to the law if it includes a Russian language option (except where the website is translated with the help of an automatic online translator) or uses a Russian top-level domain such as .ru, .su, .moscow, or the like.The clarifications further state that collection does not occur when one legal entity receives personal data from another legal entity in the context of routine business activities, such as the transmission of contact information of employees and other representatives.There is a notable exception, however, when an organization uses “computing powers” (i.e., automatic processing) to purposefully collect personal data from third parties, in which case the organization is required to comply with the data localization requirements.

The guidance is purposefully vague on this point, which indicates that the regulator likely is still considering its final position on the issue.Applicability of the law Under standard Russian jurisdictional rules, laws apply only within the territory of Russia.The clarifications, therefore, state that as a general rule the Data Localization Law should not apply to non-residents of Russia, including foreign businesses.The Ministry’s website also provides a mechanism to ask further questions online.In this blog post, we summarize the main issues raised in the published clarifications, and the possible impact on global businesses seeking to comply with the law.

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