Is Russia's VPN blockade completely effective?

Not entirely. While Roskomnadzor has blocked over 80% of commercial VPNs, some providers still maintain connectivity using obfuscation techniques (e.g., Obfsproxy) or self-built proxies. However, these methods carry legal risks, including fines or criminal liability.

What is the most critical requirement of China's new cross-border data rules for VPN providers?

The most critical requirements are data localization and security assessments. VPN providers must store user data collected in China on local servers, and if transferring personal information of over 1 million individuals abroad, they must pass a security assessment by the Cyberspace Administration of China.

How can VPN providers respond to global compliance trends?

It is recommended to adopt a regional compliance strategy with differentiated data storage and privacy policies for different countries; implement Zero Trust Architecture and end-to-end encryption; and strengthen legal teams by collaborating with local law firms to track regulatory changes in real time.

Compliance Risks for VPN Providers: From Russia's Blockade to China's New Cross-Border Data Rules

7/5/2026 · 3 min

1. Russia's VPN Blockade: From Partial Restrictions to Full Crackdown

Russia's regulatory approach to VPN services has evolved from partial restrictions to a comprehensive crackdown. In 2024, Roskomnadzor intensified its efforts by mandating that all Internet Service Providers (ISPs) deploy Deep Packet Inspection (DPI) technology to identify and block VPN traffic.

1.1 Legal Basis and Enforcement Mechanisms

The blockade is primarily based on amendments to the Federal Law on Information, Information Technologies, and Information Protection, as well as the Communications Act. Under these laws, providing VPN services that bypass government censorship is illegal. Roskomnadzor maintains a dynamically updated blacklist containing thousands of VPN server IP addresses and domains, requiring ISPs to enforce blocks within 24 hours.

1.2 Impact on VPN Providers

As of early 2025, over 80% of commercial VPN services are inaccessible within Russia. Major providers like NordVPN and ExpressVPN have ceased operating servers in Russia to avoid legal liabilities. However, some smaller providers continue to offer services using obfuscation techniques (e.g., Obfsproxy), albeit at the risk of fines or license revocation.

2. China's New Cross-Border Data Rules: Data Localization and Security Assessments

China's Regulations on Promoting and Regulating Cross-Border Data Flow, effective in 2024, impose unprecedented compliance requirements on VPN providers. The regulations mandate that any business involving the transfer of personal information or important data abroad must undergo a security assessment or certification by the Cyberspace Administration of China (CAC).

2.1 Key Compliance Requirements

Data Localization: User logs, connection records, and other data collected within China must be stored on servers located in China. Transfer abroad is prohibited without approval.
Security Assessment Obligations: VPN providers transferring personal information of over 1 million individuals or cumulative important data must apply for a data export security assessment with the CAC.
User Consent Mechanism: Providers must obtain explicit user consent and disclose the purpose, type, and recipient of data transfers.

2.2 Compliance Challenges and Strategies

For VPN providers operating in China, compliance costs have risen significantly. First, they must deploy server clusters within China and establish data centers meeting the Multi-Level Protection Scheme (MLPS) standards. Second, professional legal teams are needed to handle data security assessment filings, which typically take 3-6 months. Some providers choose to partner with local cloud services (e.g., Alibaba Cloud, Tencent Cloud) to reduce infrastructure compliance risks.

3. Global Compliance Trends and Industry Outlook

3.1 Tightening Regulations Across Countries

Beyond Russia and China, countries like India, Turkey, and the UAE have also introduced stringent VPN regulations. India requires VPN providers to store user identity data and logs for at least five years and cooperate with government investigations. Turkey's amendments to the Internet Law authorize the telecommunications regulator to directly block unregistered VPN services.

3.2 Recommendations for the Industry

Establish Regional Compliance Systems: Develop differentiated data storage and privacy policies for different jurisdictions.
Dual Focus on Technology and Compliance: Adopt Zero Trust Architecture (ZTA) and end-to-end encryption while ensuring audit logs meet local legal requirements.
Strengthen Legal Teams: Collaborate with local law firms to track regulatory changes in real-time and avoid business disruptions due to sudden policy shifts.

4. Conclusion

VPN providers are facing an increasingly complex compliance landscape worldwide. Russia's full blockade and China's new data rules are just the tip of the iceberg, with more countries likely to follow suit. Providers must strike a balance between technological innovation and legal compliance, or risk being shut out of markets.