On March 5, 2019, the State Duma adopted a draft law in the second reading concerning amendments to Parts 1, 2 and 3 of the Russian Civil Code (on digital rights).

The amendments proposed are in response to the development of technology and application of such technology in business turnover in general. For example, the term “digital right” is introduced, the exercising of which is governed by information system rules, of which, by the way, we know very little.

Deals could be entered into using electronic or other technical means. The lingering question is that of confirming genuineness of the signature expressing consent to such a deal. Will it be enough to just click OK in your personal account to duly confirm the will to enter into a deal? We believe this issue will be decided by the courts.

Among other things, there is also the possibility for meetings to adopt decisions using electronic or other similar technical means, issue of an electronic receipt under a retail sale and purchase agreement, and entering into an insurance agreement in electronic form.

In general, we see the new changes being introduced by lawmakers as positive, since they reflect the real changes in public life, while not turning the Civil Code into detailed instructions on how business participants should interact. Yet we will need to wait on regulations concerning blockchain and crypto currencies. Even if the draft law takes effect in October 2019, we will still need to wait for special laws on crowd funding and on digital financial assets, which by the way, were adopted only in the first reading. We should hope that the provisions of special laws and amended Civil Code will complement each other rather than make things more confusing as is sometimes the case.