Russia moves to localize data for foreign online games, with developer servers in Russia

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Russia is pursuing a plan to require foreign online games to operate under local data rules, effectively enabling a data localization framework for Russian users. As part of this approach, game developers would be obliged to establish servers within Russia to store and process player data. The outlines of this initiative were reported by Kommersant, a leading business daily in the country.

According to Kommersant, on November 9 officials from the Ministry of Digital Development, Roskomnadzor, and the Ministry of Economy held discussions with leaders from the gaming sector, including representatives from 1C, Lesta Games, VK Play, and the Video Game Industry Development Organization. Deputy Prime Minister Dmitry Chernyshenko reviewed the proposals and noted that they were unfinished, ordering the Ministry of Digital Development to refine the plan further before presenting it again.

The Unified Gaming Regulator is also actively drafting the associated legislation. While the details were not disclosed publicly during the meeting, observers expect the draft to include requirements for relocating game servers to the Russian Federation and to introduce a specific fee structure tied to these data-handling obligations.

In response to Chernyshenko’s directive, the Ministry of Digital Development intends to assemble a working group that will include domestic video game developers. The group’s mandate will be to standardize industry terminology and clarify the distinctions between video games and online casino platforms, ensuring the regulatory framework is precise and applicable across diverse product categories.

There are also personnel changes in the ministry, with the former head of the Cyber Security Department preparing to depart from the Ministry of Digital Development, a move that could influence how cyber resilience considerations are integrated into the forthcoming rules.

The broader policy shift reflects a desire to bring data governance and digital infrastructure under closer national supervision. Industry observers note that if implemented, the localization requirements could affect how foreign publishers price, distribute, and operate their services in Russia, potentially altering the competitive landscape for both domestic and international game developers. The evolving framework is likely to intersect with broader debates about data sovereignty, cybersecurity, and consumer protection, and it may prompt developers to reassess game architecture, cloud strategies, and cross-border data flows. Critics may raise concerns about regulatory fragmentation and the administrative burden on smaller studios, while advocates emphasize the importance of data security and user privacy in a rapidly expanding digital market. Officials insist that any final rules will aim to balance national sovereignty with the practical realities of global game distribution and user expectations for reliable online experiences, including latency considerations, uptime, and support services in the Russian market. The coming weeks are expected to bring more concrete proposals and timelines as stakeholders negotiate terms and operational details with government bodies.

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