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			 On his popular blog, the online media entrepreneur now instructs 
			readers on ways to use new technology to get around online 
			censorship, warning them: "There's not much time left." 
 With an estimated 75 million people online in Russia, up from just 2 
			million when Vladimir Putin came to power in 1999, the reach of the 
			Internet dwarfs that of the clandestine texts shared, at high risk, 
			among intellectuals during the Cold War.
 
 Where elderly Communist librarians once stood guard over copy 
			machines, activists say a slew of regulations this year aim to 
			police the web at one step removed, enabling authorities to target 
			leading dissenting voices, lean on social networks and telecoms 
			companies and encourage self-censorship.
 
 "All the people I've had time to speak with so far in the industry 
			are afraid and confused," said Dmitry Marinichev, who was appointed 
			Internet ombudsman in July as a nod to critics but who has little 
			power to alter legislation.
 
 As Western sanctions multiply over Russia's role in splitting 
			Ukraine, so do rules and restrictions over Europe's fastest growing 
			Internet market, hampering a promising sector in the stuttering 
			economy and forcing young entrepreneurs abroad.
 
 
			 
			Putin signed a law in July requiring websites used by Russians, from 
			social networks to e-booking services, to store their data on 
			servers in Russia from 2016, within greater reach of local 
			intelligence surveillance.
 
 Since last month, bloggers with more than 3,000 followers must 
			comply with tough rules governing media and since February, 
			authorities have been able to block websites without a court order; 
			the sites of two leading Kremlin critics were among the first 
			blocked, in March, when Moscow seized Crimea from Ukraine.
 
 As pro-Russian rebels took up arms in eastern Ukraine, some Russian 
			news or political sites were also barred. They joined a blacklist of 
			Internet-protocol (IP) addresses set up with the declared aim of 
			child protection but extended late last year to include sites deemed 
			to advocate unsanctioned protests like some of those in 2012 which 
			marred Putin's latest reelection.
 
 Another new rule last month requires Russians to provide 
			identification to use public Wifi hotspots and companies to declare 
			who is using their web networks.
 
 Putin, who alarmed the IT industry in April by calling the Internet 
			"a CIA project", says the measures are needed to fight "extremism" 
			but should not hinder freedom of speech.
 
 DIRECT ACCESS
 
 Many firms still do not understand how to comply or fear the laws 
			may be applied arbitrarily in country where lack of transparency and 
			fair courts are frequent business complaints.
 
 The chief executive of billionaire Alisher Usmanov's Mail.ru Group, 
			which owns two social networks more popular than Facebook in Russia, 
			has warned that freedom from bureaucratic encroachment is vital to 
			home-grown IT companies.
 
 "The course toward excessive regulation," Dmitry Grishin said in 
			comments in April that a Mail.ru Group spokeswoman said still held 
			today, "will lead Russia to lose the Internet as a unique sector 
			able to be a source of growth in our country's new, post-industrial 
			economy."
 
 
			
			 
			Many are now heeding Nossik's call to go anonymous online. Six times 
			more Russians are now using Tor, a software to obscure IP addresses, 
			than last year, the firm's data shows.
 
 In response, Russia issued a 3.9-million-rouble ($108,000) tender 
			last month to crack the encryption on Tor - used by activists in 
			countries where the web is censored but also by criminals.
 
 "Soon there won't be anything left to ban," quipped Sergei 
			Plugotarenko, head of the industry trade group Russian Electronic 
			Communications Association (RAEC).
 
 In the wake of revelations of U.S. surveillance activities by former 
			U.S. National Security Agency (NSA) contractor Edward Snowden, who 
			has taken refuge in Russia, many countries are considering placing 
			servers on their own soil.
 
 Russian officials say the aim is to protect Russians' privacy. 
			Andrei Soldatov, whose website Agentura.ru tracks the intelligence 
			agencies, said monitoring was the main goal.
 
 "They are making their life easier by getting direct access to the 
			servers, before the information is encrypted," he said.
 
 Since 1999, telecom operators and hosting providers in Russia have 
			been required to install equipment used by the security services, 
			known as the System for Operative Investigative Activities, or SORM.
 
 Soldatov said new legislation extends that demand to social networks 
			and other online forums, threatening the brand image of tech 
			companies whose users are sensitive about personal privacy.
 
 In California, Google and Twitter declined to comment, whilst 
			Facebook did not respond to requests.
 
 The "blogger law" opens popular bloggers up to prosecution for 
			swearing, libel and "extremism" and fines of up to 500,000 rubles. 
			It also requires everything posted be stored for at least six months 
			on Russian soil.
 
 The new rules spell higher infrastructure costs, according to Andrey 
			Kulikov, an investment manager at Fastlane Ventures, a venture 
			capital fund whose projects have raised about $100 million to invest 
			in online businesses in Russia.
 
			
			 
			
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			He said it is too early to tell how much impact they will have. "You 
			need a real investment cycle to see the change," Kulikov said. "I 
			would not say everything is catastrophic but the political situation 
			and the regulations will have their effect on the (investment) 
			funds." 
			VIRTUAL IRON CURTAIN
 On Aug. 18, socialite and Kremlin critic Ksenia Sobchak, who has 
			more than 870,000 followers on her micro-blog, posted what she said 
			was a screenshot of a message from Twitter, saying it had received a 
			request for "certain statistics" on her account from Russia's 
			Internet watchdog Roskomnadzor.
 
 She rejoiced that it read, "The information requested ... is not 
			currently maintained by Twitter," but predicted: "...that won't stop 
			them..."
 IT entrepreneur and Kremlin critic Leonid Volkov said the 
			aim did not seem to be a Chinese-style clampdown. "It's clear they 
			won't go after everybody but now they have another way to monitor 
			the ones they want to," Volkov said from Luxembourg, where he said 
			he works alongside 20 other Russian programmers.
 "They want to create a virtual Iron Curtain to send a signal to 
			people, 'Either you leave, and that's fine by us, or stay here but 
			then we will control everything you do."
 
 That kind of control is some way off as technology firms have pushed 
			back. When a top Twitter executive flew to Moscow to discuss the new 
			laws, Russia's watchdog said it asked him to block a dozen accounts. 
			Twitter said it had not agreed.
 
 Last month, Russian officials went a step further, proposing Apple 
			and software-maker SAP hand over their source code, saying they 
			wanted to protect state institutions against spying. The timing 
			coincided with stepped-up U.S. and European sanctions against Russia 
			and flies in the face of most major technology companies' business 
			practices.
 
 Moscow is not alone in challenging technology firms following 
			Snowden's revelations. It has joined with other countries including 
			China, Iran and India in seeking to take oversight over global 
			Internet infrastructure management away from the US-dominated 
			non-profit group ICANN.
 
			
			 
 BIG BROTHER?
 
 Critics say the main threat lies at home, not in Washington.
 
 "The real 'Big Brother' is being built before our eyes: A system 
			that knows who wrote what, when, from where and using what device," 
			prominent Putin critic Alexei Navalny said on a blog now blocked in 
			Russia and run by his supporters after he was placed under house 
			arrest, refering to George Orwell's novel on totalitarianism, 1984.
 
 In April, Pavel Durov, the 29-year-old founder of VKontakte, a 
			social media site far more popular in Russia than Facebook, fled the 
			country. He said he was fired and feared punishment for defying a 
			government request to disclose information about activists using his 
			social network site.
 
 "The smart thing to do is to get out of the Russian Internet 
			market," said Nossik, the founder of online news sites including 
			Gazeta.ru and Lenta.ru, platforms for alternative views in a nation 
			where state channels dominate the airwaves.
 
 "Professionals, who were previously proud to work in big Russian IT 
			companies, are moving. I'm talking top managers."
 
 But for all the efforts to clamp down, the Internet remains hard for 
			the state to police as users increasingly turn to virtual private 
			networks which allow them to encrypt traffic on their devices and 
			access blocked sites like Navalny's.
 
 In a dig at the gap between the perceived ambition and less 
			efficient reality of Russia's internet filtering efforts, an 
			activist hacker who briefly took control of the prime minister's 
			Twitter feed last month parodied: "We should think about banning 
			electricity - that'd be more effective."
 
 Many of the new regulations are so vaguely worded or broad, drafted 
			by those who lack savvy, they have confounded technology companies 
			and bred fears of what lawmakers might think up next.
 
 "It's bad for what is probably the only sector of the economy that 
			is growing right now," said Vladimir Kharitonov, head of the Russian 
			Web-publishers Association. "They are slaughtering a hen that lays 
			golden eggs."
 
			 
 In September, Kharitonov's e-books website was blacklisted because 
			it sat on the same IP address as one officials said was promoting 
			illegal drugs. He is appealing to the European Court of Human Rights 
			after losing a battle over the decision at home.
 
 "Everyone is at risk of being blacklisted," he said.
 
 (1 US dollar = 36.8350 Russian ruble)
 
 (Additional reporting by Eric Auchard in Vienna, Maria Kiselyova in 
			Moscow and Edwin Chan in San Francisco; editing by Philippa 
			Fletcher)
 
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