The Personal Data Localization Law that requires all data operators to localize personal data of Russian citizens in Russia will come into force on September 01, 2015. The Ministry of Communications and Media of the RF (hereinafter – the “Ministry of Communications”) issued official clarifications with respect to the processing of personal data of Russian citizens. Even though the said personal data will have to be localized in Russia, the company can thereafter create a duplicate database abroad.

The Personal Data Localisation Law (Federal Law dated 21 July 2014 No. 242-FZ), which requires all data operators collecting personal data of Russian citizens to record, systematize, accumulate, store, update, change, and retrieve these personal data in databases located within the territory of the Russian Federation, will come into force on 01.09.2015. 

Adoption of the said Law alarmed the business community, as many provisions of the Law were formulated vaguely and could therefore be ambiguously interpreted. Thus, in August the Ministry of Communications issued official clarifications on a number of problematic questions, as the correct interpretation of the legal regulations will directly affect the total costs to be incurred by the business community while implementing the Law. Moreover, a special service is operating on the official website of the Ministry of Communications, where business representatives are invited to ask any questions of interest (http://www.minsvyaz.ru/ru/personaldata/).   

Among other things, the Ministry of Communications clarified that the Personal Data Localisation Law does not limit cross-border transfer of personal data. Therefore, having formed a primary database in Russia, the company can thereafter transfer information from the said database to other companies, including to databases located abroad. Further processing of the information received by foreign companies will be effected in accordance with local legislation and international law (inter alia, The Council of Europe Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data).

In its clarifications the Ministry of Communications covered not only the transfer of personal data to other companies (business partners, parent companies), but also the creation of a duplicate database abroad by the company itself. A duplicate database can be created if personal data were recorded on the Russian database and can thereafter be transferred by the operator to another database owned by it. 

However the following two issues should be considered:

• if the data have to be updated, changed, systematized, or any other similar operations have to be undertaken, they have to be carried out by means of the database located in Russia;
• The amount of information about Russian citizens stored in the database located abroad shall not exceed the one stored in the database located in Russia.

Nevertheless, even though the Ministry purported to clarify the new law, some of its provisions are rather dubious and may result in selective prosecution.

The Russian Government has issued a Resolution creating a new industrial and production special economic zone (SEZ) within the Stupinky District, Moscow Oblast (located approx. 70 km south of Moscow). The new SEZ will be called “Stupino Quadrat”. Companies in the following areas of production are expected to do business within the new SEZ: instrument-making and mechanical engineering, pharmaceutical production and bio-industry, food production, as well as production of construction materials. 

The Russian Government has issued a Resolution creating a new industrial and production special economic zone (SEZ) within the Stupinky District, Moscow Oblast (located approx. 70 km south of Moscow). The new SEZ will be called “Stupino Quadrat”.

The designation of the new SEZ is aimed at (i) attracting investment to the region, (ii) the development of new competitive manufacturing and high-technology plants by small and medium-sized enterprises (SMEs), as well as (iii) the creation of new jobs. 

“Stupino Quadrat” is very well located, considering good transport connection within the region and the possibility of hiring highly qualified personnel. 

Companies in the following areas of production are expected to do business within the new SEZ: instrument-making and mechanical engineering, pharmaceutical production and bio-industry, food production, as well as production of construction materials. 

“Stupino Quadrat” has been created pursuant to the Federal Law “On special economic zones in the Russian Federation” (hereinafter – the “Law”). Among other things the Law provides for the procedure of becoming a resident of a SEZ. It also sets forth that residents of industrial and production SEZs shall either (i) carry out industrial and production activities or (ii) be active in the sphere of logistics. For the purposes of the Law ‘industrial and production activity’ means production and (or) processing of goods and their realization, whereas ‘logistics’ covers provision of services in the sphere of transportation and storage of goods. Specific types of activities that can be carried out by a resident of a SEZ shall be established in a special agreement concluded with the empowered authorities.

The Federal Arbitrazh court of the West-Siberian district has recently issued a report consolidating the court practice on disputes arising from lease and land relations. Municipal authorities are not entitled to unilaterally change the method whereby the lease is determined, if to do so would mean changing the method which is part of the agreement between the parties and if the right to unilateral change of the method by the landlord is not provided for by the agreement.

The Federal Arbitrazh court of the West-Siberian district has recently issued a report consolidating the court practice on disputes arising from lease and land relations (the report was approved by the Presidium of the Court on August 17, 2015).

Among other things, the Federal Arbitrazh court of the West-Siberian district explains whether the state authority (landlord) is entitled to unilaterally change the rent payments due to the application of the market value instead of the cadastral value of the land plot indicated in the agreement.

Rent payments charged for the lease of state (municipal) land are regulated, and are determined in accordance with the rates applicable under the effective legislation on terms and conditions specified in the lease agreement (clause 3 Article 65 of the Russian Land Code). As the rent payment rates are regulated, the parties are obliged to abide by the rates established regarding the land plots owned by the state or the municipality and cannot increase or decrease them. Regardless of the procedure set forth in the agreement whereby the rent payment can be changed, the new rates shall be applicable as of the date the relevant statutory act becomes effective (Article 424 of the Russian Civil Code).

If, however, the statutory act provides for (i) an option of elements (ways) whereby the rent shall be determined and (ii) the possibility of its unilateral change, the legal right to change the rent payment shall be realized in accordance with civil legislation and contractual terms and conditions. If this is the case, municipal authorities are not entitled to unilaterally change the method whereby the lease is determined if (i) to do so would mean changing the method which is part of the agreement between the parties and if (ii) the right to unilateral change of the method by the landlord is not provided for by the agreement (Resolution of The Federal Arbitrazh court of the West-Siberian district dated 10.02.2015 in the case No. А27-11464/2014). This approach corresponds with the established court practice and takes into account obligatory principles of economic rationale and predictability.

The Court of Cassation has also shed light on the following problems:

• whether the landlord is entitled to recover debts from the tenant arising from the use of the land plot leased for the purposes of construction, which cannot be used according to its designated purpose due to the so-called ‘red lines’ on the land plot; 
• whether an insurance deposit paid by the tenant as a guarantee ensuring the performance of its obligations under the lease agreement shall be returned provided that the legal relations between the parties are on-going; 
• whether the tenant is entitled to demand payment of damages in the form of the rent payments that have been paid since the state authority (landlord) unlawfully avoids the transfer of the ownership over the land plot under Article 36 of the Russian Land Code before the ownership over the said land plot has been acquired etc.

The Ministry of labour and social protection issued Regulations on labour protection in construction. The Regulations shall apply to general and specific construction works carried out during new construction, expansion and reconstruction works, technical upgrade, current and overhaul repair of buildings and construction.

Regulations on labour protection in construction issued by the Ministry of labour and social protection of the Russian Federation (hereinafter – the “Regulations’) were published on August 17, 2015 (Order dated 01.06.2015 No. 336n ) and will come into force within 10 calendar days as of their publication.

The Regulations shall apply to general and specific construction works carried out during new construction, expansion and reconstruction works, technical upgrade, current and overhaul repair of buildings and construction.  

Among other things the Regulations oblige employers to:

• ensure safety of construction works and safe use of technical equipment, as well their regulatory compliance;
• organize the development of manuals on occupational safety depending on the relevant professions and types of works to be performed, which shall be approved by internal acts, with due consideration to the trade union’s opinion with this regard;
• take all necessary measures to exclude or decrease the effects of hazardous or dangerous production factors, if applicable.Moreover, the following document forms have been approved by the Regulations:
• Operations certificate for construction and installation works on the territory of an operating production site;
• Permit to perform works in places where hazardous and dangerous production factors exist;
• Act confirming compliance of performed off-site and on-site preparatory works with occupational safety requirements and readiness of the object for construction.

The Russian State Duma is debating a bill on new rules on public easement creation, introduced on August 18, 2015. The bill provides that an easement will be created only with regard to land plots which are considered to be land plots in the common use or are common property in accordance with the relevant town planning documentation.

The Russian State Duma is debating a bill on new rules on public easement creation introduced on August 18, 2015 (hereinafter – the “Bill”).

Owners of land plots in the common use can abuse their rights by blocking access of the adjacent land plot owners to their homes and demanding payment for the right of passage. The present legal regulation does not deal with the said problem. 

The Bill provides that an easement will be created only with regard to the land plot which is considered to be a land plot in the common use or is common property in accordance with the town planning documentation. Nevertheless the indicated documentation does not always provide that public roads are in fact land plots in common use or are common property. Therefore it is unlikely that the Bill in its current edition will solve the problem.

The Bill also provides that a relevant statutory act and public hearings will be required for the creation of a public easement. Thus, the public easement creation might be a lengthy procedure. 

Notably, in accordance with the Bill the public easement creation will be carried out for free, as opposed to the general procedure whereby easements are created on a paying basis.