Russian President Vladimir Putin has enacted a decree, prohibiting telecommunications companies from returning money paid in advance to bank accounts that have been confiscated.
A new law signed by Russian President Vladimir Putin aims to strengthen measures against financial crimes involving the theft and illegal transfer of funds through telecommunications services. The law, which has been enacted, requires mobile operators in Russia to stop refunding prepaid amounts for communication services if a court order halts operations or freezes funds during a criminal investigation.
The Implications
The new law has several implications for consumers, telecommunications, and internet freedom in Russia.
Financial Impact on Consumers
Users who have prepaid phone credit will lose access to those funds if their accounts are frozen, which can occur during security crackdowns or anti-terrorist measures led by authorities like the FSB (Federal Security Service). This effectively locks consumer funds without recourse during such freezes.
Increased Control and Surveillance
The law supports broader state control over telecommunications, fitting into ongoing government measures to limit internet freedom and monitor communications. Recent internet and cellphone service shutdowns in various Russian regions are part of this trend, often justified by attempts to counter drone threats and other security concerns.
Service Disruptions and Limitations
This law further restricts user rights amid frequent and widespread service interruptions, especially in conflict-affected border areas, worsening the difficulties ordinary Russians face with connectivity and electronic payments.
The Details
The law does not apply to postpaid accounts for communication services. It also does not mention any penalties for non-compliance, nor does it alter the jurisdiction of the court orders. The implementation of the law does not require budget spending and will not impact operators' business activities. The law is in effect when accounts are frozen, and it concerns prepaid amounts for communication services, pertaining to mobile operators in Russia.
The law is designed to protect subscribers' interests, but it remains to be seen how it will be enforced and how it will impact everyday users in Russia. For now, it represents another step in Russia’s tightening grip over communication services, combining financial restrictions with expanded surveillance and operational controls on telecommunications.
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- As a result of the newly enacted law, consumers who use prepaid phone services may face financial loss when their accounts are frozen during investigations, as mobile operators in Russia are now prohibited from refunding prepaid amounts.
- This new legislation, aimed at curbing financial crimes, reinforces the government's control over the telecommunications industry by mandating operators to halt refunds of prepaid funds during investigations, contributing to increased surveillance and operational control.
