Russian State Duma Approves Outsourcing of Banking Secrecy and Client Data Without Consent
The State Duma has adopted a bill in its second and third readings that allows Russian banks to outsource the processing of client data, including banking secrecy and personal information, to external IT contractors and cloud providers without obtaining separate client consent.
Under the new rules, banks may engage only accredited IT companies and banks with a universal license that satisfy requirements for Russian control. All servers must be located within Russia. Financial institutions are required to notify the Central Bank of Russia in advance about any planned engagement of such contractors.
Contractors themselves must pass an audit conducted by organizations holding licenses from FSTEC or FSB Russia. The legislation establishes liability for the protection of received information and for any unauthorized disclosure.
A separate procedure applies to Russian banks under foreign control. Such institutions may transfer data processing to foreign banks only after obtaining approvals from the Central Bank, FSB, and Rosfinmonitoring and after meeting additional conditions.
The core principle for clients remains unchanged: explicit consent for outsourcing is not required. Banking secrecy continues to apply, yet additional authorized participants may now handle the data under regulated safeguards.
Related articles
Russia's MinTsifry Drafts Security Requirements for Trusted Domestic Software
The Russian Ministry of Digital Development has published a draft set of requirements for trusted Russian software that go beyond simple domestic origin. The proposals focus on resilience against external interference, absence of known unpatched vulnerabilities, and full development and build processes conducted inside Russia under controlled conditions. Additional rules cover up-to-date component inventories, in-country technical support, and timely disclosure of software updates. Special compatibility mandates are included for Russian browsers and electronic signature tools across multiple product classes such as operating systems, databases, office suites, and communication applications. Compliance verification would be voluntary through expert review, with results recorded in the official Russian software registry and internal-use software lists.
Rostelecom Calls for 'Doomsday' Data Centers to Counter Drone Attacks and Infrastructure Risks
Rostelecom executive Valery Ermakov has urged Russian companies to build geographically distributed backup data centers, dubbed 'doomsday' facilities, to ensure service recovery after site losses. The recommendation follows drone strikes that disabled three Yandex data centers in Sasovo, Kaluga, and Vladimir, disrupting both internal services and Yandex Cloud clients. Ermakov explained that previous centralized infrastructure, built for economic efficiency, is no longer viable under changed threat models that now include physical attacks previously considered unthinkable. He advocated a micro-cellular architecture with services spread across many sites connected by high-speed links, while warning that Russian backbone networks are overloaded and much fiber optic infrastructure dates back 20-30 years. Rostelecom positioned its TEA NEXT line running from Kaliningrad to Mongolia as a source of additional capacity to address potential backbone shortages. Yandex responded to the incidents by accelerating client data migration to partner cloud providers.
Russian Firms Accelerate Cybersecurity Strategy Adoption as Risk Reduction Emerges as Top Priority
A recent AM Live broadcast survey reveals that Russian small, medium, and large companies are increasingly developing information security strategies, with the share of organizations actively working on them rising from 9% to 28% year-over-year. The primary goal cited for 2027 is risk reduction and financial loss mitigation, selected by 78% of respondents compared to 55% previously. Key barriers have shifted, with insufficient source data now affecting 64% of companies and lack of top-management buy-in rising to 43%. Experts including Yaroslav Napalkov from MTS Bank and Nikolay Kazantsev from Securitm emphasized the need for risk-oriented approaches, three-year planning horizons with annual reviews, and early engagement with CEOs and stakeholders. Only 16% of firms have fully operationalized their strategies with metrics and cyber exercises, while personnel shortages remain the leading constraint at 59%.
VK Shares Rise 7.62% as Market Assesses Data Center Developments and Yandex Cloud Challenges
VK shares climbed sharply on October 12, reaching a peak increase of 7.62% to 134.2 rubles before moderating to a 6.6% gain at 132.95 rubles by evening. Analysts from Freedom Global linked the movement partly to the Ministry of Digital Development's announcement of joint measures with the Ministry of Defense to protect Russian data centers. Other observers at Finam suggested investors were pricing in potential client shifts from Yandex Cloud to competitors such as VK Cloud, which has already begun accelerated infrastructure placement for affected Yandex customers. The surge was also attributed to broader capital rotation away from the energy sector toward previously lagging technology stocks. While the confirmed price movement is clear, the exact drivers remain analytical interpretations rather than verified revenue impacts. The episode highlights how regulatory and infrastructure news can quickly influence valuations in the Russian cloud services market.