1. Introduction
    1. Political and administrative structure
    2. Legal environment
  2. Common forms of business structures for foreign investors
    1. Main types of structure
    2. Registration, liquidation and reorganisation of business structures
    3. Shareholders’ and participants’ agreements
    4. Strategic industries
  3. Anti-monopoly issues
    1. General legal and regulatory framework
    2. Scope of application of the Competition Law
    3. Anti-competitive practices and restriction of competition
    4. Liability
  4. Tax system
    1. General approach
    2. Corporate taxation
    3. Incentives
    4. Special tax regimes
    5. Taxation of individuals
    6. Double taxation treaties
  5. Customs regulations
    1. General approach
    2. Trade between EEU and non-EEU countries
    3. Mutual trade between the EEU members
  6. Currency control
    1. Foreign currency transactions
    2. Consequences of breach/Penalties
  7. Lending in Russia
    1. Lending documents and governing law
    2. Jurisdiction
    3. International finance transactions and repatriation requirements
    4. Security interests
    5. Recognition of security trusts
    6. Syndicated loans
    7. Enforcement
    8. Suretyships and guarantees
    9. Bankruptcy considerations
    10. Other lending related issues
  8. Employment and migration
    1. Formalising the employment relationship
    2. Managing employment relationships
    3. Terminating an employment agreement
    4. Specifics of employing foreign nationals
  9. Personal data protection
    1. General approach
    2. Scope of the Data Protection Law
    3. Liability
    4. Right to be forgotten
  10. Intellectual property
    1. General approach
    2. Contractual aspects of intellectual property rights
    3. Rights over the results of intellectual activity
    4. Company names, trade names, trademarks and appellations of origin
    5. Intellectual property rights infringements
    6. IP Court
  11. Advertising issues
    1. General approach
    2. Scope of application of the Advertising Law
    3. Violations of the Advertising Law
    4. Liability
  12. Anti-corruption and compliance
    1. General approach
    2. Legal framework
    3. Compliance requirements for companies
    4. Concept of corruption in Russian law
    5. Possible targets of bribery
    6. Liability and penalties for corruption
    7. Example of sector-specific anti-corruption measures
  13. Real estate and construction
    1. Rights to real estate
    2. Real estate transactions
    3. Resolution of real estate disputes
    4. Planning and construction issues
  14. Corporate bankruptcy
    1. Insolvency criteria
    2. Stages of bankruptcy proceedings
  15. Import substitution and production localisation in Russia
    1. Measures affecting goods importation and current import substitution legislation
    2. Localisation incentives
    3. Sector-specific impact of import restrictions and localisation requirements
  16. Banking sector
    1. Legislative and regulatory framework
    2. Licensing and operations
    3. Deposit insurance
    4. The anti-money laundering law
    5. Bank secrecy
    6. FATCA and CRS
  17. Environment, energy efficiency and renewables
    1. Environment
    2. Energy efficiency
    3. Renewables
  18. Infrastructure and public private partnerships
    1. General approach
    2. Key PPP legislation
    3. Russian PPP environment
    4. Financing
    5. Legal issues
    6. Prospects for infrastructure projects
  19. Oil & gas
    1. Legislative framework
    2. Ownership and licensing
    3. Restrictions on foreign investors
    4. Licences
    5. PSAs

Liability

Administrative fines and other sanctions 

If a data controller has violated the requirements of the Data Protection Law, Roskomnadzor and/or the relevant court may:

  • require the data controller to rectify the violation(s);
  • issue a warning to the data controller; and/or
  • impose fines.

The following fines may be imposed on data controllers:

  • for individuals: RUB 700 - 5,000 (EUR 10 - 711);
  • for company officials: RUB 3,000 - 20,000 (EUR 43 - 286);
  • for legal entities: RUB 15,000 - 75,000 (EUR 214 - 1,071).

The most frequent violations include:

  • failure to file a notification of the commencement of processing of personal data with Roskomnadzor;
  • inconsistency between the details set out in the notification and the actual processing activities; 
  • failure to obtain the Qualified Consent of a data subject and to inform a data subject on the processing of his/her personal data; and
  • processing of personal data without proper legal grounds and failure to provide unrestricted access to its personal data processing policy (e.g. posting on its website).

The Russian Code on Administrative Offences was recently amended to introduce a separate sanction for breach of personal data localisation requirements. In addition to the blocking of websites, the following fines may be imposed: 

  • on individuals: RUB 30,000 - 50,000 (EUR 429 - 715);
  • on company officials: RUB 100,000 - 200,000 (EUR 1,430 - 2,860);
  • on legal entities: RUB 1m - 6m (EUR 14,300 - 85,800).

Repeat violations of the personal data localisation rules may result in higher fines of up to RUB 18m (EUR 257,400) for legal entities.

Judicial remedies

Data subjects can file a court action against a data controller to seek compensation for damages caused by the illegal treatment of personal data. 

Criminal law issues

In serious cases, unlawful data processing may also be deemed as illegal collection and distribution of information on the private life of a person. The Russian Criminal Code provides that such violations are punishable with a fine, compulsory works or imprisonment.


[1] At the notional exchange rate of RUB 70 = EUR 1, as used for convenience throughout this guide. Back ↑

Key contacts

Anton Bankovskiy
Anton Bankovskiy
Partner
Head of Intellectual Property
T +7 495 786 40 63