ECIPE experts: Russian economy will lose 286 billion rubles due to personal data law

    The European Center for International Political Economy ( ECIPE ) predicted the consequences of the introduction of the Law on Personal Data in Russia on September 1. Losses of the Russian economy will amount to 0.27% of GDP - 286 billion rubles ($ 5.7 billion).

    The new law requires foreign companies to post data on Russian customers exclusively in the Russian Federation. Similar laws already work in Vietnam, China, Indonesia and India. ECIPE experts note that Russia will be the first country to introduce full data localization, having an economic capacity three times greater than that of developing countries.

    Russia may lose investment attractiveness, since cooperation with any foreign company will require the latest posting of customer information in Russia. And this will entail additional costs.Half of the Russian GDP is provided by companies that process a large amount of data. It is known that Brazil rejected such a law, for fear of harming the economy.

    ECIPE experts believe that against the backdrop of the new law in Russia there will be an economic recession of 4.1%.

    Internet Ombudsman Dmitry Marinichev believes that this will negatively affect small and medium-sized businesses. As a result, the market can be monopolized by large players.

    Some foreign companies have expressed their willingness to begin data transfer. Some of them have already begun this process.
    Megamind wrote that companies such as eBay , AliExpress , Google , Lenovo , Samsung are engaged in the transfer.and .

    According to a representative of Lenovo, in their case, the data represents a small amount of information that took about a terabyte - such a volume can be stored even in an ordinary laptop.

    The new law will affect manufacturers of some computer games. Oleg Sambikin, President of Syncopate Game Publisher, told RBC that the company stores personal data of Russian players in five data centers in Moscow, which are united by its own network of fiber optic lines.

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