“Бейкер и Макензи - Си-Ай-Эс, Лимитед” входит в состав Baker & McKenzie International, организации, созданной в форме швейцарского объединения (Swiss Verein), состоящего из юридических фирм - участников объединения в разных странах мира. В соответствии с общепринятой терминологией, используемой компаниями в сфере профессиональных услуг, термин “партнер” означает лицо, имеющее статус партнера в такой юридической фирме или занимающее аналогичную должность. Термин “офис” или “представительство” означает, соответственно, офис такой юридической фирмы. © 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед Russian View on Extraterritorial Jurisdiction (Recent Developments) Dmitry Lysenko, Baker & McKenzie

Recent Russian Law Developments I.Personal data localization II.Antimonopoly regulation III.Compliance regulation IV.Criminal law V.Blocking statutes

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 3 I. Personal Data Localization (1) ‒ On 21 July 2014 Russia passed a federal law aimed to localize processing of personal data of Russian citizens. The law entered into force on September 1, ‒ Russian and foreign companies that collect the personal data of Russian citizens (directly, using websites, or in some other manner) as of 1 September 2015 are required to maintain databases in Russia for the storage and processing of this data.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 4 I. Personal Data Localization (2) Sanctions for violation of the law include: ‒ blocking access to website(s); ‒ administrative fines; ‒ mandating to correct the violations; ‒ suspending the processing of personal data until the violation is corrected.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 5 I. Personal Data Localization (3) ‒ No territorial limitations as to the adressees of the law. ‒ Russian authorities opine that the localization requirements should only apply where a website specifically targets the territory of the Russian Federation, but not where it is simply accessible from Russia. ‒ What does it mean “specifically targets”?

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 6 I. Personal Data Localization (4) Non-biding comments of the RF Ministry of Telecommunications regarding the concept of "targeting the territory of the Russian Federation“ (August 2015): ‒ (a)a website is registered with a domain name related to Russia or its regions irrespective of whether such domain name is written in Latin or Cyrillic characters (e.g. ".ru", ".рф.", ".su", ".москва.", ".moscow", etc.); and / or ‒ (b)a website (or particular segments / pages of a website) is deliberately translated into the Russian language by the owner of the website or by third parties on the owner's instructions.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 7 I. Personal Data Localization (5) Since Russian is an international language for certain regions, it is necessary that a website meets at least one of the below criteria in addition to the criteria (b) above:  a website provides for the possibility to make payments in Russian rubles;  an agreement concluded through a website may be performed on the territory of the Russian Federation (delivery of goods to Russia, rendering of services or use of purchased digital content in the territory of Russia)  use of adverts in the Russian language referring to a website;  other facts obviously proving the intention of the website owner to target the Russian market in its business strategy.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 8 I. Personal Data Localization (6) ‒ The enforcement authoruty (Roskomnadzor), however, expressed its disagreement with certain provisions of the above test and called for further refining of the criteria for a foreign website targeting Russia. ‒ No well-known cases on implementation of the localization law, but the inspections started. ‒ In February 2016 Neste St. Petersburg OOO was charged with, inter alia, violations of the localization law. No outcome yet.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 9 II. Antimonopoly Regulation (1) 2006 Federal Law on the Protection of Competition Article 3. Scope of This Federal Law 2. The provisions of this Federal Law shall apply to the agreements between Russian and/or foreign persons or organizations made outside the Russian Federation, as well as to the actions made by them, if such agreements and such actions affect the state of competition in the territory of the Russian Federation.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 10 II. Antimonopoly Regulation (2) December RF Federal Antimonopoly Service (FAS) held liable a Swiss company together with a Russian hospital and distributors for bid rigging in the course of a public tender for supply of medical equipment. May 2014 – FAS held Governing Committee for Export of Catfish to the Russian Market (Vietnamse entity with public functions) liable for anti-competitive collusion with a Russian importers’ association.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 11 II. Antimonopoly Regulation (3) December FAS held liable a number of international freight forwarders liable for concerted actions resulted in additianal charges on the market of linear container carriage.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 12 III. Complaiance (1) 2008 Federal Law on Counteracting Corruption Article 3(2) Foreign citizens and […] foreign legal entities that have civil legal capacity and are formed in compliance with the legislation of foreign states, international organizations […] accused (suspected) of the commission of corruption offences outside of the Russian Federation are subject to liability under the legislation of the Russian Federation in the cases and the procedure envisaged by international treaties of the Russian Federation and federal laws.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 13 III. Complaiance (2) 2003 UN Convention against Corruption, Article 42: Each State Party shall establish its jurisdiction over the offences committed in the territory of that State Party or on board its vessels/aircrafts. State Party may establish its jurisdiction when: ‒ The offence is committed against/by a national of that State Party; ‒ The offence is committed against the State Party; ‒ Participation in laundering of proceeds of crime committed outside its territory with a view to the commission of offences related to such laundering within its territory. Russia made laundering of proceeds of crime a criminal offence under its legislation. However, no cases yet (?)

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 14 IV. Criminal Law (1) RF Criminal Code. Art. 12(3): Foreign nationals […] who have committed crimes outside the boundaries of the Russian Federation shall be brought to criminal liability under this Code in cases where the crimes run against the interests of the Russian Federation or a citizen of the Russian Federation […], and also in the cases provided for by international agreements of the Russian Federation, and unless the foreign citizens […] have been convicted in a foreign state and are brought to criminal liability on the territory of the Russian Federation.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 15 IV. Criminal Law (2) ‒ According to the Russian Investigative Committee, as of September 2015 at least 54 criminal proceedings were initiated with regard to the crimes allegedly committed in Donbass. ‒ The alleged crimes include genocide, murder, torture, abduction, use of banned means and methods of warfare, etc.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 16 IV. Criminal Law (3) ‒ Basis for jurisdiction of Russian authorities? ‒ Ukranian territory (at least de jure), Ukranian victims (mostly), Ukranian perpitrators. ‒ The Investigative Committee spokesman referred to Art. 12(3) of the Criminal Code as a basis of jurisdiction. ‒ No such cases were transferred to courts yet. ‒ Russian Government’s representative in the highest courts opined that the investigative authorities collect information and make the actions necessary for further transfer of the materials to the competent (international?) courts.

© 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед 17 V. Blocking Statutes ‒ Federal Constututional Law No. 7-FKZ dated ‒ Aim: decisions of an “interstate body for human rights protection” – i.e., European Court of Human Rights. ‒ Federal authorities may request the RF Constitutional Court to opine if they believe that fulfilling the decision of an “interstate body” is impossible because the international treaty on which it is based is interpreted in a way contradicting the Constitution. ‒ Way not to comply with the ECHR USD 1.9 bn. award against Russia in Yukos case? ‒ First request under this procedure was filed in September 2015 re the ECHR decision on voting rights of the imprisoned persons. No decision yet.

“Бейкер и Макензи - Си-Ай-Эс, Лимитед” входит в состав Baker & McKenzie International, организации, созданной в форме швейцарского объединения (Swiss Verein), состоящего из юридических фирм - участников объединения в разных странах мира. В соответствии с общепринятой терминологией, используемой компаниями в сфере профессиональных услуг, термин “партнер” означает лицо, имеющее статус партнера в такой юридической фирме или занимающее аналогичную должность. Термин “офис” или “представительство” означает, соответственно, офис такой юридической фирмы. © 2016 Бейкер и Макензи – Си-Ай-Эс, Лимитед Russian View on Extraterritorial Jurisdiction (Recent Developments) Dmitry Lysenko, Baker & McKenzie