EDICT OF THE PRESIDENT OF THE RUSSIAN FEDERATION

ABOUT ARRANGEMENTS FOR ENFORCING LEGAL ORDER IN THE AREA OF DEVELOPMENT, PRODUCTION, SALES AND USE OF CRYPTOGRAPHIC INSTRUMENTS, AS WELL AS RENDERING SERVICES IN INFORMATION ENCRYPTION

In order to secure unconditional fulfillment of the Law of the Russian Federation "About federal bodies for government communications and information", as well as to intensify the struggle against organized crime and to enhance protection of information and telecommunication systems of the bodies of state power, Russian structures for banking and finance, enterprises and organizations I decree:

1. The Programme for creation and development of information and telecommunication system for special assignments for the benefit of bodies of state power shall have the status of Presidential programme. The Center for Presidential programmes at the Administration of the President of the Russian federation jointly with the Federal agency for government communications and information attached to the President of the Russian Federation shall arrange for finishing and implementation of the programme.

2. To forbid use by government organizations and enterprises in their information and telecommunication systems of encryption instruments, including cryptographic instruments in support of authenticity of information (electronic signature), and protected technical devices for storing, processing and transmission of information which have no certificate from the Federal agency for government communications and information attached to the President of the Russian Federation, as well as giving government contracts to enterprises, organizations using said technical and encrypting instruments having no certificate from the Federal agency for government communications and information attached to the President of the Russian Federation.

3. To advise the Central bank of the Russian federation and the Federal agency for government communications and information attached to the President of the Russian Federation to take necessary actions with respect to commercial banks evading mandatory use of protected technical instruments for storing, processing and transmission of information, having a certificate from the Federal agency for government communications and information attached to the President of the Russian Federation, in their informational interaction with subdivisions of the Central bank of the Russian Federation.

4. For improvement of informational security of the Russian Federation and intensification of the struggle against organized crime, to forbid activities of legal and physical persons related to development, production, sales and use of encryption instruments as well as protected technical devices for storing, processing and transmission of information, rendering services in information encryption, without licenses issued by the Federal agency for government communications and information attached to the President of the Russian Federation, in accordance with the Law of the Russian Federation "About federal bodies for government communications and information".

5. The State customs committee of the Russian Federation shall take actions to stop import into the territory of the Russian Federation of cryptographic instruments of foreign make without a license from the Ministry for external economic relations of the Russian Federation issued with the consent of the Federal agency for government communications and information attached to the President of the Russian Federation.

6. The federal counterintelligence service of the Russian Federation jointly with the Federal agency for government communications and information attached to the President of the Russian Federation, the State tax service of the Russian Federation and the Department of tax police of the Russian Federation shall carry out detection of legal and physical persons violating the requirements of this edict.

7. To advise the Office of the Procurator-General of the Russian Federation to intensify procurator supervision of enforcement of the Law of the Russian Federation "About federal bodies for government communications and information" regarding development, production, sales and use of cryptographic instruments as well as rendering services in information encryption in Russian Federation, subject to licensing and certification by the Federal agency for government communications and information attached to the President of the Russian Federation.

8. To establish the Federal center for protection of economic information at the Federal agency for government communications and information attached to the President of the Russian Federation (within the personnel quota for this agency) with the mission of development and implementation of manifold programs of safeguarding security of economic information of Russian structures for banking, finance and other economically significant structures.

The director-general of the Federal agency for government communications and information attached to the President of the Russian Federation shall approve within 2 months the Statute of the said center.

9. This edict takes effect since the day of its publication.

President of the Russian Federation B.Yeltsin Moscow, Kremlin 3 April, 1995 no. 334


[Translated by Gregory S. Tseytin (tseytin@hm.spb.su) Wed, 19 Apr 1995.
Note: this is a preliminary translation, and Tseytin states he may not be fully competent to translate legal terms. This translation will probably be revised by subsequent translators]
Date: Mon, 24 Apr 95 19:47:26 EDT From: sbaker02@counsel.com (Stewart Baker -- Steptoe ^ Johnson - Washington ) To: farber@central.cis.upenn.edu
As you might expect, I asked our firm's Moscow office to give me some background on the new Russian crypto directive. The memo is attached. Note that the office approving crypto for public and private use also is responsible for intelligence gathering.

We may have exported democracy and capitalism to Russia, but not the Computer Security Act of 1987! (Where is Mark Rotenberg when we really need him?)

Stewart

MEMORANDUM
April 24, 1995
TO: Stewart Baker
FROM: Mikhail Solton
RE: Russian Statutes Restricting Use of Encryption Technologies

You have asked me to provide you with an overview of recent Russian legislation regulating development and use of encryption technology.

The recent Edict of the Russian President Yeltsin "On Measures to Observe the Law in Development, Production, Sale and Use of Encryption Devices and on Provision of Services in Encrypting Information" dated April 3, 1995 (the "Edict"), and restricts use of encryption technologies by Russian government agencies, State-owned, private and foreign entities, and complements a rapidly growing body of law publicly regulating activities which previously were the exclusive domain of the KGB, other national security agencies, and of the military.*[1]

The Edict bans the development, import, sale and use of unlicensed encryption devices, as well as of "protected technological means of storage, processing and transmission of information", and directs the Federal Counterintelligence Service and other enforcement agencies to ensure compliance and to prosecute violators.

The Edict designates the Federal Agency of Government Telecommunications and Information attached to the Office of the RF President (FAGTI)as the authority responsible for the review of applications and issuance of licenses. FAGTI has been established pursuant to the RF Law "On Federal Organs of Government Telecommunications and Information" of February 19, 1993[2] ("Law on Government Telecommunications"). In accordance with this statute FAGTI, headed by a Director General, reports directly to the RF President and is responsible for the security of government communications, as well as for intelligence operations in connection with encrypted and coded information.[3] The intelligence branch of FAGTI, also headed by a Director General, is semi-autonomous and and operates "in accordance with the Russian Federation Law 'On External Intelligence'".[4]

FAGTI also has an R&D branch -- the RF Academy of Cryptography[5] -- and several army units: government communications corps, radio surveillance and engineering detachments.[6]

Within its jurisdiction, FAGTI may issue orders and instruction which are mandatory for all government and private agencies and companies.[7] FAGTI conducts its activities in coordination with all RF enforcement agencies, Ministry of Defense, Ministry of Communications, Ministry of Foreign Affairs, RF General Directorate of Security, and other key government services.[8]

FAGTI will issue licenses for encryption activities in accordance with FAGTI's internal regulations and pursuant to the RF Government Decree "On licensing of certain types of activities" of December 24, 1994,[9] which sets forth general licensing guidelines for competent government agencies.

At least one article written by a prominent Russian mathematician and published in the influential Russian newspaper Izvestia on April 20, 1995 harshly criticised the Edict as overbroad, grantin unlimited discretion to the secret police and ignorant customs officers, violating civil rights, creating obstacles for international cooperation in the field of exchange and processing of information, and making meaningless the recently adopted intellectual property laws. The article expresses concern that the new statutes seek to revive and legitimize KGB methods in controlling Russian society.


FOOTNOTES

[1] Other relevant statutes include the RF Law "On State Secrets" dated July 7, 1993, RF Law "On Telecommunications" dated February 16, 1995, and the RF Law "On Information, Data Processing and Protection of Information" dated February 20, 1995. The last statute, among other things, regulates classification of information, licensing, and sets forth equipment certification guidelines. The above statutes are available in our Russian law library (in Russian)
[2] A copy of the Law is available in our Russian law library (in Russian).
[3] See Art. 6. Law on Government Telecommunications.
[4] Id. Art. 6.1.
[5] Id. Art.5.
[6] Id. Art. 8.
[7] Id. Art. 6.2., Art. 6.4.
[8] Id. Art. 8.
[9] This statute is available in our Russian law library (in Russian).


Last updated 95/04/26