RUSSIA
Since July 2006, as amended in July 2014, entry into force in September 2015, last amended in June 2023
Since December 2001, as amended in December 2019, last amended in December 2023
Since December 2001, as amended in December 2019, last amended in December 2023
Pillar Cross-border data policies |
Indicator Ban to transfer and local processing requirement
Federal Law of the Russian Federation of 27 July 2006 No. 152-FZ About personal data (Федеральный закон от 27.07.2006 г. № 152-ФЗ О персональных данных)
Russian Federation Code of Administrative Offences of 30 December 2001 No. 195-FZ (Кодекс Российской Федерации об административных правонарушениях от 30.12.2001 г. № 195-ФЗ)
Russian Federation Code of Administrative Offences of 30 December 2001 No. 195-FZ (Кодекс Российской Федерации об административных правонарушениях от 30.12.2001 г. № 195-ФЗ)
Art. 18.5 of Federal Law No. 152-FZ provides that during personal data collection, including through the Internet, the data operator shall ensure that databases located within the Russian Federation are used to record, systematise, accumulate, store, update, modify and retrieve personal data of Russian citizens. However, the requirements do not apply to companies that do not receive the data directly from either data subjects or such third parties or inadvertently in the course of normal business activity. Moreover, provided that personal data, when initially collected, is placed in a primary database located and maintained in Russia, personal data contained in the database may then be transferred abroad and placed in other secondary databases, provided the requirements for data transfers are complied with. As a result, once personal data is collected, it shall be placed in the database located in Russia (i.e., the primary database). All mentioned operations on the data should be carried out locally. Afterwards, the data can be transferred abroad for further processing (i.e., to the secondary database).
It is reported that since 2015, the Federal Service for Supervision of Communications, Information Technology, and Mass Media (Roskomnadzor) has been active in enforcing the above-mentioned measure. For instance, in November 2016, subject to the claim from Roskomnadzor, the court in Moscow restricted access to the LinkedIn social network due to the breach of the measure. Further cases mostly included administrative fines, which were also issued to major multinational companies, including Meta Platforms, Inc. (formerly Facebook, Inc.), Twitter, Inc. and later WhatsApp LLC, Google LLC, Airbnb, Inc., Apple, Inc., Twitch Interactive, Inc., United Parcel Service, Inc., Pinterest, Inc., Likeme Pte. Ltd., Ookla, LLC., Snap Inc., Match Group, LLC, Hotels.com, L.P., Spotify AB, and Zoom Video Communications, Inc. Some companies also faced repeated higher fines.
The Code of Administrative Offences establishes fines of up to RUB 6 million (approx. USD 64,620) for the first offence and up to RUB 18 million (approx. USD 193,860) for the subsequent offence.
It is reported that since 2015, the Federal Service for Supervision of Communications, Information Technology, and Mass Media (Roskomnadzor) has been active in enforcing the above-mentioned measure. For instance, in November 2016, subject to the claim from Roskomnadzor, the court in Moscow restricted access to the LinkedIn social network due to the breach of the measure. Further cases mostly included administrative fines, which were also issued to major multinational companies, including Meta Platforms, Inc. (formerly Facebook, Inc.), Twitter, Inc. and later WhatsApp LLC, Google LLC, Airbnb, Inc., Apple, Inc., Twitch Interactive, Inc., United Parcel Service, Inc., Pinterest, Inc., Likeme Pte. Ltd., Ookla, LLC., Snap Inc., Match Group, LLC, Hotels.com, L.P., Spotify AB, and Zoom Video Communications, Inc. Some companies also faced repeated higher fines.
The Code of Administrative Offences establishes fines of up to RUB 6 million (approx. USD 64,620) for the first offence and up to RUB 18 million (approx. USD 193,860) for the subsequent offence.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231021172033/http://www.kremlin.ru/acts/bank/24154/page/1
- https://web.archive.org/web/20231130141915/http://kremlin.ru/acts/bank/17704/page/1
- https://web.archive.org/web/20231208032908/https://www.dataguidance.com/comparisons/data-transfers
- https://web.archive.org/web/20240303125215/https://www.dataguidance.com/notes/russia-%E2%80%93-data-protection-overview
- https://web.archive.org/web/20231203004435/https://www.dataguidance.com/notes/russia-data-transfers
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RUSSIA
Since June 2011, as amended in October 2014, last amended in July 2023
Pillar Cross-border data policies |
Indicator Ban to transfer and local processing requirement
Federal Law of the Russian Federation of 27 June 2011 No. 161-FZ About national payment system (Федеральный закон от 27.06.2011 г. № 161-ФЗ О национальной платежной системе)
Art. 30.6.4 of Federal Law No. 161-FZ requires that foreign-based credit card companies transmit data for all transactions within Russia through state-owned operators: the National System of Payment Cards. It is reported that this affects the possibility for financial supplies to use their processing facilities located outside of Russia.
Coverage Credit card companies
Sources
- https://web.archive.org/web/20231201074958/http://www.kremlin.ru/acts/bank/33484
- https://web.archive.org/web/20231201170558/https://www.consultant.ru/document/cons_doc_LAW_170099/3d0cac60971a511280cbba229d9b6329c07731f7/#dst100009
- https://web.archive.org/web/20230331215014/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
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RUSSIA
Since November 2008, entry into force in February 2009
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
Russia has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
RUSSIA
Reported in 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Preferences for SMEs in tenders
It is reported that, effective January 2022, procuring entities in Russia are mandated to allocate no less than 25% of their total annual procurement volume to small businesses and socially oriented non-commercial organisations. These preferential allocations are detailed in procurement notices and documentation, although this information is not accessible online. Despite this lack of transparency, the prioritisation of locally produced technologies, digital goods, and services has been a consistent focus of Russian policy. Since 2015, sector-specific regulations have reinforced this approach. These include the Resolution No. 1442 of 24 December 2015 "On procurement of innovative products, high-tech products certain types of legal entities and amending certain Acts of the Russian Federation" (Постановление Правительства РФ от 25 декабря 2015 г. N 1442 "О закупках инновационной продукции, высокотехнологичной продукции отдельными видами юридических лиц и внесении изменений в отдельные акты Правительства Российской Федерации"), which establishes procedures for determining the annual volume of purchases by State-Owned Enterprises (SOEs) of innovative and high-tech products, including minimum purchasing requirements from SMEs. Furthermore, Resolution No. 717 of 2016 identified 135 SOEs subject to these minimum SME purchasing mandates.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230331005121/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S416R1.pdf&Open=True
- https://web.archive.org/web/20230402033248/https://base.garant.ru/71296076/
- https://web.archive.org/web/20220523102040/https://docs.cntd.ru/document/563906262
- https://web.archive.org/web/20220623212035/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/G/TRIMSQ/RUS10.pdf&Open=True
- https://web.archive.org/web/20230704221024/https://ru-ikt.ru/
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RUSSIA
Since December 2015
Since June 2018
Since June 2018
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Decision No. 155 of the Ministry of Economic Development "On the conditions for admission of goods originating from foreign countries for the purposes of purchasing goods, works, services for provision of state and municipal needs" (Приказ Министерства экономического развития РФ от 25 марта 2014 г. № 155 “Об условиях допуска товаров, происходящих из иностранных государств, для целей осуществления закупок товаров, работ, услуг для обеспечения государственных и муниципальных нужд")
Decision No. 126 of the Ministry of Finance "On the conditions for the admission of goods originating from a foreign state or a group of foreign states for the purpose of purchasing goods to meet state and municipal needs (Приказ Минфина России от 4 июня 2018 г. № 126н "Об условиях допуска товаров")
Decision No. 126 of the Ministry of Finance "On the conditions for the admission of goods originating from a foreign state or a group of foreign states for the purpose of purchasing goods to meet state and municipal needs (Приказ Минфина России от 4 июня 2018 г. № 126н "Об условиях допуска товаров")
Ministry of Economic Development's Decision No. 155 grants preferences of 15% (30% in case of radio-electronic equipment) in relation to the contract price in public procurement auctions and tenders to participants who propose to supply goods originating from Eurasian Economic Union (EAEU) countries. The Decision was later replaced by Decision No. 126 of the Ministry of Finance in June 2018, which contains a similar provision with regard to price preference to EAEU countries.
Coverage Horizontal
RUSSIA
Since September 2016
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Government Resolution No. 925 "On the priority of goods of Russian origin, work, services performed by Russian persons in relation to goods originating from a foreign state, work, services performed by foreign persons" (Постановление Правительства Российской Федерации от 16 сентября 2016 г. N 925 г. Москва "О приоритете товаров российского происхождения, работ, услуг, выполняемых, оказываемых российскими лицами, по отношению к товарам, происходящим из иностранного государства, работам, услугам, выполняемым, оказываемым иностранными лицами")
Government Resolution No. 925, adopted on 16 September 2016, applies broadly to all goods, works, and services, introducing a 15% price preference for domestically produced products. Alternatively, it imposes a 15% price reduction on foreign products during tendering procedures. Additionally, paragraph 8 of Resolution No. 925 stipulates that priority must be determined in compliance with the provisions of GATT 1994 and the EAEU Treaty.
Coverage Horizontal
RUSSIA
N/A
Pillar Public procurement of ICT goods and online services |
Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Russia is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2013.
Coverage Horizontal
RUSSIA
Since April 2008, as amended in January 2015, last amended in April 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Federal Law No. 57-FZ "On Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence" (Федеральный закон от 29 апреля 2008 г. N 57-ФЗ "О порядке осуществления иностранных инвестиций в хозяйственные общества, имеющие стратегическое значение для обеспечения обороны страны и безопасности государства")
Under Art. 2 of Federal Law No. 57, foreign states, international organisations, and entities under their control — including those established in Russia — are prohibited from entering into transactions that would grant them a majority interest in business entities deemed strategically important for national defence and state security. Consequently, foreign state-controlled investors are restricted from acquiring more than 50% of shares or majority voting rights in such companies.
According to Art. 6 of the law business strategically important for national defence and state security include those involved in the development and production of encryption tools, maintenance of cryptographic systems, and provision of encryption services, as well as activities such as detecting covert information-gathering devices.
According to Art. 6 of the law business strategically important for national defence and state security include those involved in the development and production of encryption tools, maintenance of cryptographic systems, and provision of encryption services, as well as activities such as detecting covert information-gathering devices.
Coverage Business entities of strategic importance in digital field
RUSSIA
Since December 1991, as amended in January 2016, last amended in June 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Federal Law No. 2124-I "On Mass Media" (Федеральный закон № 2124-И "О средствах массовой информации")
The Law on Mass Media, initially enacted in 1991 and subsequently amended multiple times, underwent significant revisions in January 2016 concerning foreign ownership regulations. According to Art. 19-1, foreign entities such as foreign states, international organisations, entities under their control, foreign legal entities, Russian legal entities with foreign participation, foreign citizens, stateless persons, and Russian citizens holding dual citizenship are prohibited from acting as founders or participants of mass media organisations, editorial offices of mass media, or entities engaged in broadcasting. Additionally, Art. 19-1 prohibits direct or indirect possession, management, or control by the aforementioned foreign entities or individuals of more than 20% of shares in the authorised capital of entities involved in mass media or broadcasting activities. This has led to large-scale redistribution of property in the media market and the departure from Russia of a number of major international publishers (e.g. Finnish Sanoma, Axel Springer, the German, the American Dow Jones and FT Group). Other foreign shareholders in the Russian media either reduced their stakes in Russian media or re-registered their ownership in the Russian jurisdiction.
Coverage Media sector
Sources
- https://web.archive.org/web/20250206184829/https://www.consultant.ru/document/cons_doc_LAW_1511/
- https://web.archive.org/web/20250206184705/https://www.consultant.ru/document/cons_doc_LAW_1511/c7ccbcc04d86ec3a730fda44b5c819ee9b5cffef/
- https://web.archive.org/web/20180129124526/http://intersectionproject.eu/article/politics/discrediting-journalism-russias-new-laws-foreign-agents
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RUSSIA
Since July 2017
Since April 2008, last amended in April 2023
Since April 2008, last amended in April 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Federal Law No. 160-FZ "On Foreign Investments"
Federal Law No. 57-FZ "On Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence" (Федеральный закон от 29 апреля 2008 г. N 57-ФЗ "О порядке осуществления иностранных инвестиций в хозяйственные общества, имеющие стратегическое значение для обеспечения обороны страны и безопасности государства")
Federal Law No. 57-FZ "On Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence" (Федеральный закон от 29 апреля 2008 г. N 57-ФЗ "О порядке осуществления иностранных инвестиций в хозяйственные общества, имеющие стратегическое значение для обеспечения обороны страны и безопасности государства")
According to Art. 6 of Federal Law No. 160-FZ (amended in 2017), transactions involving Russian business entities by foreign investors require prior approval under Art. 57 of Federal Law No. 57 on "Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence". This law aims to safeguard national defence and security interests. Following the 2017 amendments, the Government Commission for Control over Foreign Investments, as outlined in Art. 12 of Federal Law No. 57, has the authority to impose additional conditions on foreign investors seeking approval for transactions deemed critical to protect national defence and state security.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231203144508/http://www.consultant.ru/document/cons_doc_LAW_16283/f5800630f89fe46e6382707c7e61a950adabcf73/
- https://web.archive.org/web/20211025230819/https://www.wipo.int/edocs/lexdocs/laws/en/ru/ru047en.pdf
- https://web.archive.org/web/20210501181804/https://investmentpolicy.unctad.org/investment-laws/laws/307/russian-federation-
- https://www.ibanet.org/document?id=FDI-Guide-Russia-2022
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RUSSIA
Since April 2008, last amended in April 2023
Since October 2008, last amended in March 2023
Since October 2008, last amended in March 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Federal Law No. 57-FZ "On Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence" (Федеральный закон от 29 апреля 2008 г. N 57-ФЗ "О порядке осуществления иностранных инвестиций в хозяйственные общества, имеющие стратегическое значение для обеспечения обороны страны и безопасности государства")
Resolution of the Government of the Russian Federation of October 27, 2008 No. 795 "On approval of the Rules for the submission by a foreign investor or a group of persons, which includes a foreign investor, and other persons of information provided for in Article 14 of the Federal Law "On the procedure for implementing foreign investments in business entities of strategic importance for ensuring the defense of the country and state security" (Постановление Правительства РФ от 27 октября 2008 г. N 795 "Об утверждении Правил представления иностранным инвестором или группой лиц, в которую входит иностранный инвестор, и иными лицами информации, предусмотренной статьей 14 Федерального закона "О порядке осуществления иностранных инвестиций в хозяйственные общества, имеющие стратегическое значение для обеспечения обороны страны и безопасности государства" )
Resolution of the Government of the Russian Federation of October 27, 2008 No. 795 "On approval of the Rules for the submission by a foreign investor or a group of persons, which includes a foreign investor, and other persons of information provided for in Article 14 of the Federal Law "On the procedure for implementing foreign investments in business entities of strategic importance for ensuring the defense of the country and state security" (Постановление Правительства РФ от 27 октября 2008 г. N 795 "Об утверждении Правил представления иностранным инвестором или группой лиц, в которую входит иностранный инвестор, и иными лицами информации, предусмотренной статьей 14 Федерального закона "О порядке осуществления иностранных инвестиций в хозяйственные общества, имеющие стратегическое значение для обеспечения обороны страны и безопасности государства" )
Arts. 6 and 7 of Federal Law No. 57-FZ specify that preliminary approval is required for certain transations related to the acquisition of shares in entities deemed of strategic importance. These entities include companies involved in the development and production of encryption tools, maintenance of cryptographic systems, and provision of encryption services.
Additionally, pursuant to Art. 14 of Federal Law No. 57-FZ and the Resolution of the Government of the Russian Federation No. 795, foreign investors must notify the Federal Antimonopoly Service (FAS) of any transaction enabling the acquisition of 5% or more of shares or interests in such strategic entities. This notification must be submitted within 45 days of the transaction's closure.
Additionally, pursuant to Art. 14 of Federal Law No. 57-FZ and the Resolution of the Government of the Russian Federation No. 795, foreign investors must notify the Federal Antimonopoly Service (FAS) of any transaction enabling the acquisition of 5% or more of shares or interests in such strategic entities. This notification must be submitted within 45 days of the transaction's closure.
Coverage Encryption services
Sources
- https://web.archive.org/web/20241120134016/https://base.garant.ru/12160212/
- https://web.archive.org/web/20210516072718/https://base.garant.ru/12163114/
- https://web.archive.org/web/20181107084546/https://www.garant.ru/products/ipo/prime/doc/12063114/#12063114
- https://www.ibanet.org/document?id=FDI-Guide-Russia-2022
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RUSSIA
Since December 1991, as amended in March 2020, last amended in June 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Commercial presence requirement for digital services providers
Federal Law No. 2124-I "On Mass Media" (Федеральный закон № 2124-И "О средствах массовой информации")
According to Art. 2 of Law on Mass Media, a foreign legal entity that disseminates information and materials (including via the Internet) by audio or audiovisual means while receiving financing from a foreign State, State bodies, international organisations or foreign citizens could be recognised as a foreign mass media performing the functions of a foreign agent. The Russian Ministry of Justice maintains a register of such foreign mass media agents (Art. 6). These foreign mass media agents can disseminate information and materials only through locally incorporated legal entities and only with a special note indicating that such information has been created and disseminated by a foreign agent. If the respective mass media does not comply with legal requirements, its transmissions shall be blocked in Russia.
Coverage Foreign mass media agents
RUSSIA
Since July 2021, last amended in June 2024
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Commercial presence requirement for digital services providers
Federal Law of the Russian Federation No. 236-FZ About activities of foreign persons on the Internet in the territory of the Russian Federation (Федеральный закон от 01.07.2021 г. № 236-ФЗ О деятельности иностранных лиц в информационно-телекоммуникационной сети «Интернет» на территории Российской Федерации)
Art. 5 of Federal Law No. 236-FZ mandates that foreign companies operating within the Russian segment of the internet must establish a subsidiary or branch office within Russia. Reports from Russian state-owned news agencies and members of parliament indicate that the legislation targets a range of sectors, including social networks, video platforms, instant messaging services, e-mail providers, search engines, hosting services, online retailers, and Wikipedia.org.
Coverage Foreign companies operating online in Russia
Sources
- https://web.archive.org/web/20231225214812/http://www.kremlin.ru/acts/bank/46991
- https://web.archive.org/web/20221206070504/https://www.morganlewis.com/-/media/files/publication/outside-publication/article/2021/data-localization-laws-russian-federation.pdf
- https://insightplus.bakermckenzie.com/bm/attachment_dw.action?attkey=FRbANEucS95NMLRN47z%2BeeOgEFCt8EGQJsWJiCH2WAVfnLVn2ghRGFsI%2BDQwx%2Fo4&nav=FRbANEucS95NMLRN47z%2BeeOgEFCt8EGQbuwypnpZjc4%3D&attdocp...
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RUSSIA
Since January 2008
Since September 1992, last amended in February 2003
Since September 1992, last amended in February 2003
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Part IV of the Civil Code of the Russian Federation and Federal Law No. 231-FZ "On the enactment of part IV of the Civil Code of the Russian Federation"
Patent Law of Russian Federation No. 3517-1
Patent Law of Russian Federation No. 3517-1
According to Art. 1247 of the Civil Code, foreign legal entities shall carry out their dealings with the federal executive power body charged with intellectual property matters, meaning Federal Service for Intellectual Property (Rospatent) through patent attorneys registered with Rospatent, unless otherwise envisaged by an international treaty of the Russian Federation.
Previously, Art. 15 of the Patent Law of Russian Federation No. 3517-1 required individuals with permanent residence outside the Russian Federation or foreign legal entities or their patent attorneys shall deal with the Federal executive authority on intellectual property through patent attorneys, registered with the Federal executive authority on intellectual property. This Article was replaced on 1 January 2008 by Part IV of the Civil Code.
Previously, Art. 15 of the Patent Law of Russian Federation No. 3517-1 required individuals with permanent residence outside the Russian Federation or foreign legal entities or their patent attorneys shall deal with the Federal executive authority on intellectual property through patent attorneys, registered with the Federal executive authority on intellectual property. This Article was replaced on 1 January 2008 by Part IV of the Civil Code.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231206191136/http://docs.cntd.ru/document/902019731
- https://web.archive.org/web/20230331103940/http://docs.cntd.ru/document/902360437
- https://web.archive.org/web/20220312233705/https://rospatent.gov.ru/en/documents/grazhdanskiy-kodeks-rossiyskoy-federacii-chast-chetvertaya
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RUSSIA
Since March 2022
Since 1994, last amended in 2021
Since 1994, last amended in 2021
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the enforcement of patents
Resolution of the Government of the Russian Federation, No. 299 of 6 March 2022
Russian Civil Code
Russian Civil Code
The Russian government has adopted a decree that will allow local companies and individuals to use inventions, utility models, and industrial designs held by owners from “unfriendly countries” without their consent and without paying any compensation. This includes, among others, all members of the European Union and the United States.
The decree is based on art. 1360 of the Russian Civil Code, which allows the government to use inventions, utility models and industrial designs without the consent of the patent holder when extreme needs of national defence and security or protection of life or public health justify this.
The decree is based on art. 1360 of the Russian Civil Code, which allows the government to use inventions, utility models and industrial designs without the consent of the patent holder when extreme needs of national defence and security or protection of life or public health justify this.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240209141042/http://publication.pravo.gov.ru/Document/View/0001202203070001?index=1&rangeSize=1
- https://web.archive.org/web/20231205144011/https://sanctionsnews.bakermckenzie.com/russia-adopts-zero-compensation-to-patent-owners-from-unfriendly-countries/
- https://web.archive.org/web/20230329061901/https://www.taftlaw.com/news-events/law-bulletins/russia-issues-decree-affecting-ip-rights-for-unfriendly-countries
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