Russia: Implemented Law increasing fines for non-compliance with local operation requirement (Federal Law No. 259-FZ)

On 14 July 2022, the Law increasing fines for non-compliance with local operation requirement (Federal Law No. 259-FZ), previously Bill 84631-8 amending the Code of the Russian Federation on Administrative Offenses, was implemented following the publication in the official gazette. The Law establishes stricter penalties for foreign internet companies that fail to open representative offices in Russia, as required by Law No. 236-FZ. In particular, any foreign IT company that fails to register on the Roskomnadzor website, place a feedback form on its information resource and establish a Russian legal entity, create a branch, or open a representative office on the territory of the Russian Federation will have to pay an administrative fine amounting to 10% of its revenue in the last financial year. In addition, for repeated violations, the company will have to pay a fine ranging from 10% to 20% of its global turnover in the last financial year. Finally, the Bill introduces fines of up to RUB 5 million for search engine operators, hosting providers, advertisers and advertising distributors that fail to comply with the local operation requirement.