What Changes in Russia from July: Data Localization, Online Courts, and Product Labeling

Starting July 1, 2025, a series of significant legislative changes will come into force in Russia. Key updates include stricter rules for storing personal data, the launch of electronic proceedings for administrative cases, mandatory labeling for new product categories, as well as new auditing standards and financial market regulations. The main changes are:

1. Localization of Personal Data

From July 1, the personal data of Russian citizens may be stored and processed exclusively on servers within Russia. Collected information must first enter Russian databases and may only be transferred abroad if necessary. The amendment eliminates ambiguity in previous legal wording.

Enhanced protection measures for civil servants and law enforcement:

• Data of judges, law enforcement officers, and participants in criminal proceedings will be subject to stricter protection.
• State authorities will gain access to storage systems to modify or restrict the dissemination of such data.
• Operators must encrypt information and restrict access if there is a threat to life or safety.

2. Electronic Proceedings for Administrative Cases

From July 1, administrative offense cases may be conducted entirely in digital format:

• Documents can be submitted via the “Gosuslugi” portal, regional services, judicial information systems, or EDI (using an electronic signature).
• Participation in hearings is available via video link or web conferences after identity verification through ESIA or the Unified Biometric System.
• Notices, summons, and decisions will be sent via email, SMS, or the “Gosuslugi” personal account (with the recipient’s consent).

Significance of changes:

• Legal entities will reduce time and financial costs, especially if a case is initiated outside the organization’s registered location.
• Notifications via “Gosuslugi” are equated to paper notices, significantly altering procedural practices.
  

3. Changes in the Financial Sector

Digital Ruble Regulation:

• Digital ruble transactions will be subject to AML/CFT (anti-money laundering and counter-terrorist financing) rules similar to those for banks.
• Mandatory control applies to transactions exceeding 1 million rubles (excluding transfers between digital ruble wallets).
• Platform participants must assess client risks and may block accounts.
  
  

Securities Market (from July 23):

• Information on securities transactions and issuance must be submitted exclusively electronically via dedicated disclosure platforms.
• Registry holders must provide investors with free annual account statements.
  

4. Mandatory Labeling and Intellectual Property Protection

From July 1, labeling applies to:

• Perfumes and cosmetics;
• Household chemicals;
• Sauces, spices, seasonings, dry soup mixes, and vinegar in consumer packaging.
  Data must be submitted to the “Honest Sign” (Chestny ZNAK) system. Previously issued codes remain valid after re-registration.
  
  

From July 28:
Unauthorized use of geographical indications (e.g., “Tula gingerbread,” “Khokhloma”) will be deemed an administrative offense.